Advance Ruling – Prior consultation with tax authorities possible

Through the introduction of the Information Notice According to § 118 BAO (Advance Ruling), it is since January 2011 Possible, planned developments or restructuring in advance to clarify matters with the financial authority in order to ensure its tax recognition. The possibility of discussing them in advance – instead of afterwards during the business tax audit – applies to the following areas: Depilations, Group taxation and Reconciliation prices limited. Since significant tax consequences can regularly arise in these areas, this new instrument is certainly to be welcomed. So far, it has been and continues to be the case that Judgments possible with the financial administration – in contrast to the (new) binding disclosure notices, these are based solely on the information provided by the client. in good faith.

The Application an advance ruling is in writing to the responsible tax office to present, whereby this is done via Finanz Online It is possible, but not, for example, by email. Very important Pre-requisite For the clarification with the financial authorities in advance, it is that the Planned situation (e.g. a merger, the expansion of the corporate group, or the determination of a foreign exchange price using a database study) at the time of application not yet realized It is. In content terms, in addition to the factual presentation in the application, the applicant’s special interests, the legal problem, specifically formulated Legal issues as well as an in-depth explanation Solution to the legal issues arise. Likewise, the figures for the amount of the Administrative costs contribution It must contain relevant information. The administrative fee applies pro requested Background, where it is possible that several legal issues (e.g. corporate tax and road tax issues) to answer a factual situation and only for that purpose a management cost contribution to be paid. The Administrative cost contribution measured according to the Revenue from sales of the applicant, or subsequently, whether the company is required to prepare a consolidated financial statement. The Costs To obtain the information notice, the following documents are required: Business expense refundable and are generally at least 1,500 € and increase in accordance with sales revenues in the 12 months preceding the last closing date. The Maximum amount makes 20.000 € is paid out and deducted either when revenue exceeds €38.5 million or when the obligation to prepare a consolidated financial statement is in place. Only €500 is payable if the application is rejected or withdrawn.

After the tax authority has all the documents and information relevant for the assessment, the following occurs: material examination of the application and as a further consequence to Issuance of the disclosure order. It should be noted that the authority can also assess the situation differently than the applicant – therefore can The Applicant if applicable, against the decision appointed, Since the disclosure notice must not have any binding effect to the detriment of the party. Ideal situation the financial authority shares the taxpayer’s legal view, which then results in a statement of information Right of appeal der legal consequences outlined in the notice. The prerequisite is, of course, that the fulfilled the offense Not or merely insignificant in relation to the facts presented for assessment differs. The duration of the assessment of the matter by the tax office depends, among other things, on the complexity of the matter. The maximum duration is 6 months (general time limit for appeal), although a more rapid assessment is likely to be the norm.

The right of appeal is independent of the case law of the VwGH as well as of (future) regulations of the Ministry of Finance, but not to the extent that the underlying tax regulations change. Furthermore, it should be taken into account that the Information notice not binding for foreign financial authorities While it is – and is relevant in practice – this can mainly be the case in the area of calculation prices. Overall, the Advance Ruling is a positive step towards higher standards of transparency. Planning and legal certainty. It should also not be underestimated that financial authorities, when approached beforehand and involved in the resolution process, often act cooperatively than during an operational audit, when it comes to assessing the facts that have already been established.

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