Austria MOF Clarifies Tax Treatment of Undeclared Income, Speculative Gains as Business Expenses

The Austrian Federal Ministry of Finance Sept. 17 posted online Federal Finance Court Decision No. RV/5101161/2019, clarifying the taxation of undeclared income and speculative gains as business expenses. The taxpayer, a contract broker and investment advisor, was subject to a house search and external audit that uncovered undeclared income and questionable business expenses. The Tax Office assessed additional income tax and VAT. The taxpayer argued that some commissions belonged to his former partner. On appeal, the Federal Finance Court held that: 1) the commission income was attributable to the taxpayer, because the contracts and bank accounts were in his name, ...