The European Court of Justice said this week that rules to restrict tax breaks on charitable donations made by residents of European Union countries breach the principles of free movement of capital and are unlawful, reports The Financial Times.

Some countries had previously restricted the tax breaks that donors would traditionally receive for charitable donations if those donations were made outside the donor’s country of residence. These laws had been put in place to increase domestic spending and because “governments are often concerned about increased risk of tax avoidance and the difficulty of scrutinizing foreign charities,” reports the newspaper.

See The Chronicle’s article on efforts to break down barriers to giving among European countries.

(Free registration is required to view the Financial Times article, and a paid subscription or short-term pass is required to view the Chronicle article.)