On 7 November 2013 the European Court of Justice (ECJ) ruled on a question referred to it by the Supreme Administrative Court of Finland in respect of the treatment of a capital loss incurred in another member state.

The question put to the ECJ was whether Articles 63 and 65 of the Treaty on the Functioning of the EU (TFEU) precluded national tax legislation. The ECJ determined that Articles 63 and 65 TFEU do not preclude national tax legislation that could deny the possibility of offsetting capital losses in another member state against capital gains in the state of residence, even though offset would have been possible in some circumstances if the capital losses had been made in the state of residence of the taxpayer.