Austria MOF Clarifies Hobbies for Income Tax Purposes

The Austrian Federal Ministry of Finance May 13 posted online Federal Finance Court Decision No. GZ. RV/7103926/2019, clarifying hobbies for income tax purposes. The taxpayer took over her father’s antique and souvenir business in 2000, which closed in 2018. In an audit, it was concluded that income and losses from the business shouldn’t be recognized because it was a hobby, given the extent of increasing losses. Thus, income and VAT assessments were issued to the taxpayer. The taxpayer’s representative argued, in part, that the losses were due to construction that didn’t result in increased business. The Federal Finance Court found ...