Does the reach of the European Court of Justice extend beyond the European Union?

The recent decision of the European Court of Justice (ECJ) in the Jany case, which originated from the Netherlands, concerned the claim made by East European prostitutes -- based on the association agreements concluded by the European Union with Poland and the Czech Republic -- that they should be able to work and settle in Amsterdam as prostitutes. This article considers, taking into account EC jurisprudence, the tax aspects of the European Economic Area Treaty in international tax law and discusses the purpose of association agreements. This article also examines the tax aspects of association agreements, based on a case currently pending in the ECJ, which raises the question whether it is compatible with Community law for a Member State (the Netherlands) to deny a tax deduction for interest paid in the Netherlands in connection with a foreign participation while, in the domestic context, the interest is deductible.