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 examines these rulings and discusses the scope of the conflict and how it can be solved in consistency with European Union Law, with special focus on the relevant rulings of the Court of Justice of the European Union quoted by the Federal Fiscal Court.
