On 10 April 2014, the Court of Justice of the European Union (CJEU) ruled in case C-190/12 concerning the Emerging Markets Series of DFA Investment Trust Company. The CJEU held that barring a non-EU investment fund, in this case a US investment fund, from receiving an exemption from tax on Polish source dividends although domestic and EU investment funds could take advantage of the exemption could amount to a limit on the freedom of movement of capital, if the Polish government could verify the comparability between US funds and Polish funds. The CJEU has therefore decided to refer the case to the Polish court to look at the question of whether this condition is fulfilled, for example if the Polish government can use bilateral agreements to establish details of the US or other investment funds.
The freedom of movement of capital within the EU can also apply to movement of capital involving a country outside the EU. The principle was therefore applied by the CJEU in the above case.