On 18 December 2007, the European Court of Justice (ECJ) gave its decision in the case of A v. Skatteverket (C-101/05). The Swedish Supreme Administrative Court (Regeringsrätten) had requested a preliminary ruling from the ECJ on 15 October 2004. The ECJ held that Arts. 56 and 58 of the EC Treaty (free movement of capital) are to be interpreted as not precluding the Swedish legislation which provides that exemption from income tax in respect of dividends distributed in the form of shares in a subsidiary may be granted only if the company making the distribution is established in a state...