Nine EU Member States, namely the Czech Republic, Denmark, Lithuania, the Netherlands, Poland, Portugal, Slovenia, Spain and Sweden, are subject to an investigation by the European Commission for breach of EU rules on free movement of capital. In particular, the Commission has reason to believe that dividend and/or interest payments to foreign pension funds (outbound payments) may be taxed more heavily than dividend and/or interest payments to domestic pension funds (domestic payments). The nine EU Member States are asked to provide their observations within two months. This is the first step of the infringement procedure under the EC Treaty.