At issue were the tax consequences from (alleged) “key account expenses” paid by “Key Account – X GmbH” to a related party, X FL. X GmbH provided marketing services for an unrelated German manufacturer of machine tools Y. The marketing contract between X GmbH and Y was the basis for the intensive cooperation between Y and X GmbH in the years in dispute. In connection with the intensification of the business relationship with Y, X GmbH took measures regarding a cross-border restructuring. The owners of the group had X FL Lichtenstein established as of March 1998. The business purpose of X FL was “conception and consultancy in the areas of advertising, marketing and public relations”. By invoice dated 1 September 1998, X GmbH informed X FL of the following: “For the provision of (A) as a key account we charge you a one-off goodwill in the amount of ATS 8,000,000.” On 3 September 1998 A, as managing director of X ... Read more