On 24 May 2007, the European Court of Justice (ECJ) gave its decision in the case of Winfried L. Holböck v. Finanzamt Salzburg-Land (C-157/05). Details of the judgment are summarized below. Issue. The issue in the case was whether or not the different taxation of dividends received by Austrian resident shareholders holding two-thirds of the capital of a company resident in a third State (non-EU country), as compared to dividends received by such shareholders from companies resident in Austria, was compatible with the principle of the free movement of capital. According to the Austrian rules applicable at the time of...