Austria MOF Clarifies Application of Tax Surcharges Under Corporate Income Tax Act

The Austrian Federal Ministry of Finance April 23 posted Federal Finance Court Decision No. RV/5100886/2018, clarifying tax surcharges under the Corporate Income Tax Act. The taxpayer, a group parent company, was assessed a corporate income tax surcharges following an audit. The Tax Office reclassified certain marketing and sponsorship expenses as nondeductible representation expenses and imposed the surcharges when the taxpayer declined to disclose event participants and ticket recipients. On appeal, the Federal Finance Court held that: 1) the surcharges applied once the tax authority duly requested the recipient identification and the taxpayer failed to comply; 2) recipients included beneficiaries of ...