On 30 April 2025, the Court of Justice of the European Union published its decision regarding reclaims of withholding tax filed on behalf of Franklin Mutual Series Funds – Franklin Mutual European Fund, a U.S. regulated investment company.
The case deals with the question of whether the denial of tax refunds to non-resident investment funds that are comparable to EU-regulated funds is compatible with the free movement of capital set out in Article 63 of the Treaty on the Functioning of the European Union.
In this article, our Managing Partner, Keith O’Donnell, our Tax Principal, Desislava Dimitrova, and Tax Director, Allan Latassa, alongside Virteos Partner, Angelo Concin, analyse this decision and its consequences for pending WHT reclaims in Austria.