The Dutch tax authorities had levied withholding tax on dividend payments to pension schemes based outside of the Netherlands but within the EU. This policy was challenged by the Strathclyde Pension Scheme on the basis that it restricted the free movement of capital.

The Dutch revenue agreed to refund withholding taxes back to 2003 in this case, but has not yet formally admitted that the practice contravened European law. However, the case will have implications for UK pension schemes which have made similar investments in the Netherlands (in that they should be entitled to a refund of relevant withholding taxes) and may also encourage certain other member states to reform similar withholding tax policies.