Austria MOF Clarifies Tax Residence, Tax Evasion Rules Under DTAs With Germany, U.K.

The Austrian Federal Ministry of Finance Feb. 23 posted online Federal Finance Court Decision No. GZ. RV/3100069/2016, clarifying tax residence and evasion rules under DTAs with Germany and the U.K. The taxpayer, a U.K. citizen residing in Austria, worked as an engineer and was engaged in local activities. The taxpayer billed the services he provided in Germany through a shell company. The Tax Authority challenged the taxpayer’s residency for specific years. On appeal, the Federal Finance Court held that: 1) the taxpayer had unlimited tax liability in Germany; 2) the taxpayer was a tax resident of Austria because his center ...