The Austrian Administrative Supreme Court held that a “contribution in kind” of silent partnership interests did not qualify under the beneficial provisions of the tax law on reorganizations in Austria.
In general, application of the Austrian reorganization tax law requires that the transaction must be tax-neutral for (corporate) income tax purposes. In the case before the high court, the silent partnership interests did not have a positive “fair value” as required under a provision of the reorganization tax law. Thus, the transaction was subject to tax as the ordinary sale of the silent partnership interests. The court then turned to discuss the tax consequences of such sales.
Read a March 2018 report [PDF 332 KB] prepared by the KPMG member firm in Austria
Other items briefly discussed in this report concern:
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