The Austrian Federal Fiscal Court ruled in a recent decision that the dividends as well as the sale of the shares of two Hungarian corporations held by an Austrian farmer, who also operates an agricultural enterprise in Hungary, are taxable in Austria due to the agricultural enterprise not fulfilling the requirements of an enterprise according to Art 7 of the tax treaty between Austria and Hungary. Michael Lang discusses the decision and the tax treaty treatment of farms, the relationship of Art 6, 7, 10, 11, and 12 OECD Model Convention and the relevance of the OECD Commentaries for the interpretation of those provisions.
