On 13 November the CJEU delivered its second ruling in the FII case resolving areas of controversy arising from its first judgment of December 2006. In addition to a variety of ACT related questions largely answered in the taxpayers’ favour, it has found that the UK’s dividend taxation system prior to the introduction of exemption in 2009 was contrary to EU law. It has also concluded that, in principle, dividends received from companies resident outside the EU/EEA are also protected by EU law from the introduction of the predecessor to article 63 of the TFEU on 1 January 1994 whatever the level of investment.
