Fiscal Court of Appeal rules on depreciation of goodwill in relation to participations in non-resident members of an Austrian tax group

In a recently published decision of 16 April 2013 (RV/0073-L/11), the Fiscal Court of Appeal of Linz (Unabhängiger Finanzsenat, Außenstelle Linz, UFSL) ruled on the Austrian provisions relating to the depreciation of goodwill.

(a) Facts. In the relevant years 2006 and 2007, an Austrian resident joint stock company (G) acquired via its 100% owned subsidiary (E) a 100% participation in a limited liability company resident in the Slovak Republic (Z). From 2006, all three companies were part…