Investment funds can claim millions back in overpaid dividend withholding tax from governments across Europe, following today's European Court of Justice ruling that a Finnish tax withheld on tax dividends paid to foreign investment funds is considered illegal. The ruling in the case of Aberdeen Property Fininvest Alpha Oy is one of the first cases in the European courts to consider the legality of an EU member state levying dividend withholding taxes only on dividends paid to non-resident investment funds while exempting domestic investment funds from such taxes. Teresa Owusu-Adjel, UK investment management tax markets leader at PricewaterhouseCoopers said: 'This judgement is welcome news for investment funds that have been subjected to discriminatory withholding taxes on dividends from EU member states. 'It will not only set the ball rolling for many repayment claims, but also give those who have already filed for protective claims the confidence to push ahead with their local tax authorities and rebut the arguments presented in return.'