Tag: Obvious

Austria vs "Bf AG", June 2022, Bundesfinanzgericht, Case No RV/7102083/2009

Austria vs “Bf AG”, June 2022, Bundesfinanzgericht, Case No RV/7102083/2009

“Bf AG” had outstanding trade receivables from a sister company, “Leuchten GmbH”. These receivables were non-interest bearing. Following an audit for FY 2002-2004 the tax authorities issued an assessment where additional corporate income tax for FY 2002 to 2004 had been assessed. According to the tax authorities the lack of interest on the outstanding receivables constituted a hidden distribution of profits. The additional taxable income was determined by applying average interest rate to the outstanding amounts. A complaint was filed by “Bf AG” with the Tax Court. The Court decided in favour of tax authorities and found that similar terms would not have been granted to a unrelated company. An application for appeal was then filed by “Bf AG” with the Federal Tax Court. Judgement of the Federal Tax Court The Court allowed the appeal, set aside the decision of the Tax Court, and decided in favour of “Bf AG”. Excerpts “The case law of the highest courts on obvious ... Read more