The Court of Cassation held that the rate difference violated the principle of free movement of capital under Article 63 of the Treaty on the Functioning of the European Union. Based on the decision, nonresident mutual funds are eligible for the same tax treatment as resident mutual funds. Impacted nonresident mutual funds should consider the appropriate steps for filing for refund of the additional tax withheld or asserting claims already filed at the court level.Executive summaryBy judgments No. 21454, 21475, 21480, 21481 and 21482 (referred to jointly as “the case”),1 the Italian Court of Cassation (CC) affirmed that the local tax...