European Union – Taxation. Amongst other things, the Court of Justice of the European Union ruled that art 49 of the EC Treaty did not preclude national legislation under which a procedure for withholding tax at source was applied to the income of financial institutions not resident in the member state in which the services were provided, whereas the income received by resident financial institutions was not subject to such withholding tax, provided that the application of the withholding tax to the non-resident financial institutions was justified by an overriding reason in the general interest and did not go beyond what was necessary to attain the objective pursued.