The divergent allocation of income of fiscally transparent entities between contracting states has caused problems in the application of double taxation treaties for a long time. While the OECD in its “partnership report" generally allocates income according to the tax law of the state of residence, the Austrian Supreme Administrative Court in its established case law focuses on the allocation of income according to the tax law of the source state. Michael Lang analyzes and criticizes the current case law of the Austrian Supreme Administrative Court.
