The Austrian Federal Fiscal Court recently decided a case involving a bequest of shares in Spanish real estate companies to an Austrian private foundation. It was undisputed that the existing tax treaty between Austria and Spain did not apply due to its material scope. According to the court, Section 48 Austrian Federal Fiscal Code also offered no possibility of relief from the Austrian foundation tax. Rather, the court considered a certain degree of double taxation acceptable. This article presents the court’s decision and outlines the legislative development of Section 48 Austrian Federal Fiscal Code to date.
