This article deals with a decision issued by the Austrian Supreme Administrative Court (VwGH) in the case regarding the Austrian furniture retailer XXXLutz which transferred its important intellectual property rights to Malta and licensed them to an Austrian group entity for the purposes of use on the local market. The decision relied mainly on the concept of economic ownership; however, it provides an interesting point of reference for further discussion in the context of relevant developments in transfer pricing and international tax law. Karol Dziwiński discusses the approach taken by the Court as well as its ramifications for the practice, in particular with reference to the application of the concepts of economic ownership and the DEMPE functions.
