This note examines the CJEU decision in Tax Authority for Large Traders v. Franklin Mutual European Fund (Case C-602/23), a case concerning the intersection of tax transparency of investment funds, legal personality of investment funds and capital movements between the European Union and third states. The case arose as a result of Austria’s refusal to grant a full withholding tax refund to a US-based investment fund. The Court held that non-resident entities from third states may be treated comparably to resident UCITS funds if they meet equivalent substantive criteria, such as risk-spreading and taxation at the unit-holder level. The Court rejected the notion that the legal personality of non-resident entities alone could justify differential treatment. The decision also clarified that tax authorities and national courts must consider the tax treatment of non-resident entities in the third state of residence when assessing comparability. This decision can be considered a precedent for the tax treatment of third-state investment vehicles.