Chris Morgan considers the implications of the CJEU Santander case concerning withholding tax on cross-border dividends.
The Court of Justice of the European Union (CJEU) issued its decision in the FIM Santander Top 25 Euro Fi joined cases (C-338/11 to C347-11) on 10 May 2012. This is a case looking at withholding tax on cross-border dividends a subject that has come before the Court on many occasions in the past and there are a number of decisions confirming that such withholding tax is unlawful within the EU/EEA. However the reason the Santander case is so significant is because two of the claimants were US funds (one open ended and the other closed ended) and this is the first time the CJEU has been asked...
