Austria MOF Clarifies Taxation Rules for Private Foundations Under DTA With Switzerland

The Austrian Federal Ministry of Finance March 4 posted online Federal Finance Court Decision No. GZ. RV/6100676/2016, clarifying intermediate taxation of capital and investment income of private foundations under the DTA with Switzerland. The taxpayer, an Austrian private foundation, made donations to a Swiss beneficiary and sought to revoke its 2013 corporation tax assessment, citing a 2015 ECJ ruling. The Tax Office rejected the complaint and the taxpayer appealed. On appeal, the Federal Finance Court reversed the Tax Office’s decision and held that: 1) intermediate taxation of the taxpayer’s income under amended Section 13(3) of the Corporation Tax Act violated ...