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Hinzurechnungsbesteuerung und Abzugsverbot: Kumulative Anwendung überschießend?

SWI 2018, 586

A cumulative application of both the newly introduced Austrian CFC regime according to Sec 10a CITA and the non-deductibility rule for interest and royalties paid to associated low-taxed enterprises according to Sec 12 para 1 no 10 CITA could lead to a potentially unintended result. The respective interest and royalty payments would be taxed twice in the hands of the Austrian controlling shareholder: a first time due to the increased tax base caused by the payments’ non-deductibility as well as a second time through the newly introduced CFC pick-up. Daniel W. Blum analyses whether a cumulative approach goes beyond the legislator’s initial intent and outlines options to solve this problem by means of interpretation.