Austria MOF Clarifies Loss of Goodwill Amortization Upon Intra-Group Business Sales

The Austrian Federal Ministry of Finance April 14 posted online Federal Finance Court Decision No. RV/7103092/2020, clarifying the loss of goodwill amortization upon intra-group business sales. The taxpayer, a corporate-group parent company, claimed goodwill amortization arising from the acquisition of a business-operating subsidiary whose business was later transferred within the tax group. Following a tax audit, the Tax Office denied part of the goodwill amortization, considering the transfer as being a structural change. On appeal, the Federal Finance Court found that: 1) amortization under section 9(7) of the Corporate Income Tax Act is limited to the period during which the ...