ECJ: Advocate General finds Swedish legislation limiting the exemption of third-country dividends justifiable restriction on EC free movement of capital

On 11 September 2007, Advocate General Yves Bot of the European Court of Justice (ECJ) gave his opinion in case of Skatteverket v. A (C-101/05). The Swedish Supreme Administrative Court (Regeringsrätten) had requested a preliminary ruling from the ECJ on 15 October 2004.

In this case, the Advocate General concluded that the legislation which exempts inbound dividends on condition that the parent company making the distribution (in the form of shares i…