Head in the sand when trust income is in sight? Analysis of double taxation of trust income originating from dividends in light of Articles 49 and 63 TFEU.

Abstract: This thesis challenges the treatment of trust income received in a country with no trusts in its legal system in light of freedom of establishment and free movement of capital. Can provisions of a Member State that has decided not to have trusts in its legal system make the transfer of shares or even the establishment of a trust elsewhere less favourable? This question, as the starting point of this thesis, managed to open a Pandora’s box of additional aspects and questions to consider, where each deserves a thesis on its own. In search of answers, the thesis establishes that trusts enjoy the protection of fundamental freedoms. Further, the thesis dives into comparability analysis by presenting two alternatives of how to find a comparable in a situation where purely equivalent comparable does not exist. If a domestic comparable cannot be found in light of the proposed comparability analysis, the thesis questions the necessity of the comparability analysis altogether. Along with other nuances, during the determination of the restriction, the thesis challenges whether Member States have to protect the use of establishments they do not use in their system and whether fundamental freedoms can be challenged if the use of said freedoms does not take place in the Member State from what the restriction derives. Lastly, the thesis presents justifications that might be used for Member States if a restriction indeed is found, with indications of the proportionality of such justifications.