The European Court of Justice (ECJ) published a decision on 10 April 2014 ruling that withholding tax on dividend distributions to funds located in non-EU countries may constitute a breach of the principle of free movement of capital if dividend distributions to comparable domestic investment funds are tax-exempt. Comparability does not demand an application of comparable regulations in the state of residence but the proof of a factual comparability with a domestic fund. In addition, the states involved must be bound by an obligation under a convention on mutual administrative assistance and exchange of information and thereby be in a position to verify any information that may be transmitted by the fund to prove comparability (ECJ, decision dated 10 April 2014, “Emerging Markets Series of DFA Investment Trust Company“ - C-190/12).