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Finanzamt Linz v Bundesfinanzgericht, Außenstelle Linz

In Finanzamt Linz v Bundesfinanzgericht Außenstelle Linz C-66/14 (6 October 2015) the CJEU found that a provision which only allowed the depreciation of goodwill in relation to holdings in resident subsidiaries was in breach of EU law.

Under Austrian law a parent company acquiring a holding in an Austrian resident company which becomes a member of its group can depreciate the goodwill up to a maximum of 50% of the purchase price. However no goodwill depreciation is allowed in the case of an acquisition in a non-resident company. IFN an Austrian company had therefore been denied any goodwill depreciation on the acquisition of a holding in a company established in Slovakia.

IFN contended that the relevant Austrian provisions were in breach of TFEU art 49 on the freedom of establishment.

The CJEU confirmed that the relevant Austrian provisions created a difference in...

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