The Austrian Federal Fiscal Court (Bundesfinanzgericht) decided in two recent rulings that the prohibition of deduction for interest and license fees paid to group companies and taxed at a low rate by the recipient, as stipulated by Sec 12 Para 1 No 10 CITA, conflicts with the freedom of establishment. Michael Lang examined these rulings and discussed the scope of the conflict and how it can be solved in consistency with European Union Law in one of the previous editions of SWI. Nikolaus Zorn responds to this contribution.
