In National Grid Indus BV v Inspecteur van de Belastingdienst Rijnmond / kantoor Rotterdam (CJEU Case C-371/10) the CJEU held that Article 49 of the TFEU did not preclude ‘legislation of a Member State under which the amount of tax on unrealised capital gains relating to a company’s assets is fixed definitively without taking account of decreases or increases in value which may occur subsequently at the time when the company because of the transfer of its place of effective management to another Member State ceases to obtain profits taxable in the former Member State; it makes no difference that the unrealised capital gains that are taxed relate to exchange rate gains which cannot be reflected in the host Member State under the tax system in force there’. However Article 49 did preclude ‘legislation of a Member State which prescribes the immediate recovery...
