Proceedings brought by Manninen

Subject Matter

EUROPEAN COMMUNITY — Free movement of capital — Revenue — Company profits taxed as corporation tax — Shareholders subject to income tax on distributed profits but also entitled to tax credit in same amount — Credit entitlement only in case of dividends from nationally-based companies — Whether non-entitlement in case of dividends from non-national EC companies prima facie contrary to freedom of movement of capital — Whether justifiable — Derogation for national tax law provisions distinguishing between taxpayers not in same situation — Cohesion of tax system — EC Treaty, arts 56 EC, 58 EC

(Case C-319/02); [2005] Ch 236; [2005] 2 WLR 670