{"id":150558,"date":"2026-10-12T11:28:32","date_gmt":"2026-10-12T11:28:32","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=150558"},"modified":"2026-10-12T12:06:05","modified_gmt":"2026-10-12T12:06:05","slug":"austria-tax-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/austria-tax-disputes\/","title":{"rendered":"Austria: Tax Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-150558","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax-disputes","jurisdictions-austria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">LeitnerLeitner<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/LeitnerInternational_logo_0c60m70y0k.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">LeitnerLeitner<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/LeitnerInternational_logo_0c60m70y0k.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax Disputes laws and regulations applicable in Austria<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it necessary for a taxpayer to register with the tax authority? Are separate registrations required for corporate income tax and value added tax\/sales tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Income tax and corporate tax<\/strong><\/p>\n<p>Under Austrian tax law, self-employed individuals and corporations must notify the Austrian tax authorities within one month of commencing a business or professional activity. Corporations should generally register for Austrian tax purposes upon incorporation. Employees and pensioners whose income is fully subject to wage-tax withholding generally do not need a separate Austrian tax registration. Registration is usually completed electronically via FinanzOnline, after which the tax authorities issue an Austrian tax identification number for tax returns and other dealings with the Austrian tax authorities.<\/p>\n<p><strong>Value added tax<\/strong><\/p>\n<p>A separate Austrian VAT registration is generally unnecessary once a business has completed its general tax registration, because VAT is administered under the same tax number. An Austrian VAT identification number (UID), used particularly for intra-EU and other cross-border transactions, is generally issued automatically. However, where the Austrian tax authorities consider that the business is unlikely to charge and remit VAT because its expected annual turnover does not exceed the EUR 55,000 small-business threshold, a UID is not issued automatically. The taxpayer may request an Austrian VAT number in the general registration form or by separate application.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In general terms, when a taxpayer files a tax return, does the tax authority check it and issue a tax assessment, or is there a self-assessment system where the taxpayer\u2019s own assessment stands unless the tax authority intervenes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria operates a mixed tax assessment system. Annual Austrian income tax, corporate income tax and VAT returns are followed by formal tax assessments (Bescheide) determining the tax liability. By contrast, VAT prepayments and Austrian wage tax, which is calculated, withheld and remitted by the employer, are self-assessed. The Austrian tax authorities may review a self-assessment and issue a formal assessment if the reported tax is incorrect or incomplete.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a taxpayer amend their return after it has been filed? If so, are there any time limits for doing so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The procedure available to a taxpayer depends primarily on whether a tax assessment has already been issued.<\/p>\n<p>Before a tax assessment is issued, a taxpayer may supplement or correct a filed return. If the taxpayer subsequently discovers that a return is incorrect or incomplete and this results, or may result, in an understatement of tax, the taxpayer must notify the tax authorities without undue delay, provided the applicable limitation period has not expired (\u00a7 139 Austrian Federal Fiscal Code (FFC)).<\/p>\n<p>Once an assessment has been issued, filing an amended return does not in itself alter the assessment. The taxpayer must instead challenge the assessment by filing an appeal (Bescheidbeschwerde), generally within one month of service (\u00a7 245 FFC). During this period, the taxpayer may in principle challenge both the factual and legal basis of the assessment.<\/p>\n<p>Once an assessment is final, the taxpayer has no general right to reopen it merely to change a position taken in the original tax return. The FFC nevertheless provides specific correction mechanisms. Clerical, calculation and similar mechanical errors may be corrected on the taxpayer\u2019s application or the tax authority\u2019s own initiative (\u00a7 293 FFC). An assessment whose operative part is substantively incorrect may likewise be annulled, generally within one year of notification (\u00a7 299 FFC).<\/p>\n<p>A taxpayer may also apply for reopening of completed proceedings where, for example, relevant new facts or evidence emerge, the assessment was obtained through fraud or another criminal offence, or a preliminary issue on which the assessment depended is subsequently decided differently, provided that the relevant circumstance could have led to a different assessment (\u00a7 303 FFC). The tax authorities may reopen proceedings on the same statutory grounds on its own initiative. Reopening is subject to the statutory time limits as outlined in question 5.<\/p>\n<p>These mechanisms do not confer an unrestricted right to amend a final assessment. The taxpayer must demonstrate that the requirements of the relevant statutory remedy are met, and discretionary corrections generally remain subject to the tax authority\u2019s discretion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the main methods by which a tax authority may challenge the amount of tax a taxpayer has paid by way of an initial assessment\/self-assessment. Does the tax authority need any justification to commence such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Austrian tax authorities may challenge a declared tax position by reviewing the tax return and requesting further information, explanations or supporting documents. They may also conduct an Austrian external tax audit of the taxpayer\u2019s books, records and other circumstances relevant to the taxpayer\u2019s tax liability.<\/p>\n<p>If the review identifies an incorrect tax position, the tax authorities may determine or adjust the liability. For a self-assessed tax where no formal assessment has been issued, the tax authorities may issue one under the applicable statutory rules. If a formal assessment already exists, the authorities must rely on a statutory correction mechanism, most commonly reopening the proceedings where an audit reveals new facts or evidence.<\/p>\n<p>As a general rule, the Austrian tax authorities do not need to demonstrate a specific suspicion of non-compliance before commencing an external tax audit in Austria. However, if the tax review or audit gives rise to sufficient grounds for suspicion of intentional tax evasion or a grossly negligent understatement of tax, separate Austrian financial criminal proceedings may also be initiated.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the time limits for a tax authority to commence a challenge to the taxpayer\u2019s assessment\/self-assessment (disregarding any override of these limits to comply with obligations to provide relief from double taxation under a tax treaty)? Does a tax authority have any options to challenge a self-assessment after expiry of the relevant time limit?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Austrian tax law, the tax authorities may challenge a final tax assessment only where specific statutory grounds exist. These include the emergence of new facts or evidence, an assessment obtained through fraud or another criminal act, or a subsequent different decision on a preliminary issue on which the assessment depended (see also Question 3).<\/p>\n<p>The tax authority\u2019s right to assess or adjust tax is generally subject to a five-year limitation period, including for income tax, corporate income tax and VAT. The period generally runs from the end of the calendar year in which the tax claim arose. A ten-year period applies to intentionally evaded tax (\u00a7 207 FFC). An externally recognisable action by the tax authorities to enforce the claim or identify the taxpayer during the limitation period generally extends it by one year (\u00a7 209 FFC).<\/p>\n<p>For self-assessed taxes, the tax authorities may generally issue an assessment within one year after notification of the self-assessed amount. After that period, an assessment is possible only where one of the specific statutory grounds for a subsequent assessment applies, broadly reflecting the grounds on which an existing tax assessment may be reopened or otherwise corrected (\u00a7 201 FFC). In all cases, the applicable general limitation periods must also be observed. Once those periods have expired, the tax authorities are generally barred from making an additional assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud defined under the laws of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian financial criminal law distinguishes several categories of Austrian tax offences rather than applying a single definition of tax fraud:<\/p>\n<p>Tax evasion (Abgabenhinterziehung) occurs where a person intentionally breaches tax reporting, disclosure or truthfulness obligations and thereby understates tax. It is punishable by a fine of up to twice the tax evaded and in very rare cases imprisonment of up to four years (\u00a7 33 FinStrG).<\/p>\n<p>Grossly negligent understatement of tax (grob fahrl\u00e4ssige Abgabenverk\u00fcrzung) covers comparable conduct committed with gross negligence. It is punishable by a fine of up to the amount of tax understated (\u00a7 34 FinStrG).<\/p>\n<p>Tax fraud (Abgabenbetrug) is an aggravated form of certain intentional tax offences involving qualifying fraudulent conduct, such as forged or false evidence or sham transactions. It carries imprisonment of up to five years or, where the relevant amount exceeds EUR 500,000, one to ten years; substantial additional fines may also apply (\u00a7 39 FinStrG).<\/p>\n<p>Financial regulatory offences (Finanzordnungswidrigkeiten) cover less serious breaches of tax compliance obligations, such as certain failures to pay self-assessed taxes on time or to comply with reporting obligations. They are generally punishable by monetary fines, with the maximum depending on the particular offence.<\/p>\n<p>There are also several separate offences relating to customs and cross-border trade. These include, in particular, smuggling and the intentional evasion of import or export duties, with penalties depending on the nature of the offence and the amount of duties evaded.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud treated? Will the tax authority conduct a criminal investigation with a view to seeking prosecution and a custodial sentence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where there are sufficient grounds to suspect tax fraud in Austria, the matter is generally pursued in separate Austrian financial criminal proceedings. For most Austrian tax offences, the Anti-Fraud Office (Amt f\u00fcr Betrugsbek\u00e4mpfung) acts as the financial criminal authority and conducts the investigation; customs offences are handled by the Austrian Customs Office. Less serious cases are generally dealt with in administrative financial criminal proceedings, in which the authority investigates the alleged offence and imposes the penalty.<\/p>\n<p>In Austria, serious intentional tax offences, including aggravated forms of tax evasion and tax fraud, generally fall within the jurisdiction of the criminal courts where the relevant threshold is exceeded. This applies where the amount involved exceeds EUR 150,000, or EUR 75,000 for certain customs offences. The investigation proceedings are conducted by a public prosecutor. After the indictment has been filed, the case is heard before an independent criminal court. \u00a0In the event of a conviction, a monetary fine is generally imposed. In particularly serious tax fraud cases, sentences may also be imposed in addition to a monetary fine.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have to abide by any standards or a code of conduct when carrying out audits? Does the tax authority publish any details of how it conducts audits in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax audits are governed primarily by the Austrian Federal Fiscal Code (FFC). During a tax audit in Austria, the tax authorities must investigate the relevant facts objectively and apply Austrian tax law equally. At the end of an external audit, the taxpayer is generally entitled to a closing meeting to discuss the audit findings and then receives the formal tax audit report.<\/p>\n<p>The Austrian Ministry of Finance publishes practical audit guidance. Its \u201cOrganisationshandbuch der Finanzverwaltung (OHB)\u201d covers the preparation, conduct and documentation of external audits, including the closing meeting and audit report. As an internal administrative guideline, however, it does not create enforceable rights or obligations for taxpayers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information? Does this extend to emails? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>During Austrian tax proceedings and tax audits, taxpayers are subject to statutory disclosure and, where applicable, bookkeeping and record-keeping obligations. The Austrian tax authorities may inspect tax-relevant books, records and supporting documents and require the taxpayer to explain or substantiate information provided for tax purposes (\u00a7\u00a7 119, 138, 143 and 164 FFC).<\/p>\n<p>In addition, the tax authorities may require taxpayers to provide information and produce tax-relevant documents. These powers may also extend to electronically stored information, including relevant business emails, subject to statutory confidentiality and refusal rights.<\/p>\n<p>Such information requests are generally procedural measures and cannot be appealed separately. Their legality may instead be challenged together with the resulting tax assessment, while a formal coercive penalty imposed for non-compliance may itself be appealed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information from third parties? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Austrian tax authorities may require third parties, including customers, suppliers and other business partners, to provide information and documents relevant to a taxpayer\u2019s Austrian tax affairs (\u00a7 143 FFC). Third parties should generally be approached only where enquiries of the taxpayer have failed or are unlikely to succeed. Statutory rights of refusal, including professional secrecy and protection against self-incrimination, may apply. As a procedural measure, an Austrian third-party information request generally cannot be appealed separately.<\/p>\n<p>Specific regimes apply to certain third parties. Banks may be required to provide account information, subject to additional safeguards, including prior approval by the Federal Fiscal Court for certain account inspections. Payment service providers and digital platform operators are also subject to specific statutory reporting obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to settle an audit by way of a binding agreement, i.e. without litigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax law does not generally permit the taxpayer and the Austrian tax authorities to compromise the tax due by a binding tax settlement. Audit findings are discussed at the closing meeting, where disputed factual or valuation issues may often be resolved, allowing an Austrian tax audit to conclude without litigation.<\/p>\n<p>Any agreed outcome must, however, be implemented through the applicable statutory procedures and reflected in the relevant tax assessment. The tax authorities cannot contractually waive or reduce a statutory tax liability merely by agreement with the taxpayer.<\/p>\n<p>However, Austrian taxpayers may obtain advance certainty before a tax audit in respect of transactions that have not yet been implemented. Depending on the issue, they may apply for a legally binding advance ruling (<em>Auskunftsbescheid<\/em>) in relation to specific questions of Austrian tax law (e.g. restructurings and VAT); seek non-binding guidance from the Austrian tax authorities on other questions of Austrian tax law, which may provide limited protection under the principle of good faith (<em>Treu und Glauben<\/em>) or submit an anonymous Express Answer Service (EAS) request to the Austrian Federal Ministry of Finance for its non-binding view on a specific question arising under international tax law. In transfer pricing matters, taxpayers may also apply for a unilateral ruling or request a bilateral or multilateral advance pricing agreement with the competent authorities of the jurisdictions concerned.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer is concerned about how they are being treated, or the speed at which an audit is being conducted, do they have any remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, a taxpayer has no subjective right to require the replacement of a particular tax auditor. The taxpayer must therefore continue to cooperate with the auditor even if they are concerned about the way in which they are being treated.<\/p>\n<p>Tax auditors must, however, comply with the general principles of Austrian tax procedure. In particular, they must conduct the proceedings objectively, respect the taxpayer\u2019s procedural rights and take into account circumstances and evidence both for and against the taxpayer. The taxpayer\u2019s duty to cooperate is correspondingly limited to the statutory cooperation and record-keeping obligations.<\/p>\n<p>If a taxpayer is concerned about the manner in which an audit is being conducted, any inappropriate, emotional or apparently biased conduct should be documented contemporaneously, and the taxpayer should seek assistance from a qualified tax adviser or lawyer.<\/p>\n<p>In exceptional cases, a supervisory complaint against the auditor may also be considered. State liability proceedings may also be available where unlawful and culpable conduct by a tax official has caused recoverable damage. However, such remedies will generally succeed only in exceptional circumstances.<\/p>\n<p>There is no specific remedy solely because a tax audit is progressing slowly, nor is there a statutory right to completion within a specified period. Only prolonged, complete inactivity by the tax authorities may justify an application for a formal determination that the audit has concluded, and such relief is likely to be granted only exceptionally.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer disagrees with a tax assessment, do they have a right of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. A taxpayer may appeal an Austrian tax assessment by filing a Bescheidbeschwerde, generally within one month of service. The Austrian tax authorities will usually reconsider the matter first and issue a preliminary appeal decision (Beschwerdevorentscheidung). If the taxpayer disagrees, they may request within one month that the Austrian tax appeal be referred to the Federal Fiscal Court (Bundesfinanzgericht) for an independent judicial decision.<\/p>\n<p>Filing an appeal does not automatically suspend collection of the disputed tax. However, the taxpayer may apply for a suspension of collection while the appeal is pending.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the right of appeal to an administrative body (independent or otherwise) or to a judicial body (i.e. a tribunal or court)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As noted above (see Question 13), the tax authorities will generally reconsider the appeal first by issuing a preliminary appeal decision (Beschwerdevorentscheidung). If the taxpayer requests referral, the matter is decided by the Federal Fiscal Court (Bundesfinanzgericht), an independent judicial body specialising in federal tax matters.<\/p>\n<p>Decisions of the Federal Fiscal Court may subsequently be challenged before the Administrative Court (Verwaltungsgerichtshof) or the Constitutional Court (Verfassungsgerichtshof), subject to the applicable requirements.<\/p>\n<p>Financial criminal proceedings must be distinguished from disputes concerning the correct amount of tax. Financial offences are generally dealt with by the competent financial criminal authority, whose decisions may be appealed to the Federal Fiscal Court. More serious intentional offences fall within the jurisdiction of the criminal courts where the relevant amount exceeds EUR 150,000 (EUR 75,000 for certain customs offences); in those cases, the ordinary criminal court system applies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the hearing in public? Is the decision published? What other information about the appeal can be accessed by a third party\/the public?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Ordinary tax proceedings before the tax authorities, including audits and assessment proceedings, are not public. Tax appeals before the Federal Fiscal Court are frequently determined on the written record. Where an oral hearing is held, generally upon request by the taxpayer, it is public. However, the taxpayer may apply for the public to be excluded where legitimate interests requiring protection are affected, for example business secrets. Decisions of the Federal Fiscal Court are generally published online in anonymised form (see <a href=\"https:\/\/findok.bmf.gv.at\/\">https:\/\/findok.bmf.gv.at<\/a>).<\/p>\n<p>Financial criminal proceedings are subject to separate rules. Less serious administrative cases are generally dealt with by a single financial criminal officer and are not public. More serious administrative cases are heard by a financial criminal panel (Spruchsenat) and, unless the taxpayer waives an oral hearing, the hearing is held in public. Appeals against administrative financial criminal decisions are heard by the Federal Fiscal Court, where any oral hearing held in such cases is generally public.<\/p>\n<p>Serious financial offences falling within the jurisdiction of the ordinary criminal courts are tried in public hearings. Only selected criminal court decisions are published and, where published, they are generally made available only in anonymised form.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the procedure mainly written or a combination of written and oral?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Ordinary tax proceedings are predominantly written. This also applies to appeals before the Federal Fiscal Court, where an oral hearing is not mandatory as a rule and is generally held only if requested by the taxpayer or considered necessary by the court. Even where a hearing takes place, the written submissions and documentary record typically remain central to the proceedings.<\/p>\n<p>Financial criminal proceedings place greater emphasis on oral hearings. In administrative financial criminal proceedings, a simplified penalty order may be issued without a hearing; otherwise, the case is generally determined after an oral hearing. In practice, however, written submissions and the documentary record usually remain decisive even where an oral hearing is held. Serious financial offences dealt with by the criminal courts are determined following an oral criminal trial.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a document discovery process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax disputes do not involve a document discovery process comparable to common-law litigation. In ordinary Austrian tax proceedings, the tax authorities are responsible for establishing the relevant facts, while taxpayers are subject to statutory disclosure, cooperation and, where applicable, bookkeeping, record-keeping and document-retention obligations. Taxpayers must fully and accurately disclose circumstances relevant to their tax liability and may be required to explain or substantiate their submissions with supporting documents. The taxpayer has a right to inspect the relevant Austrian tax file, but there is no general reciprocal pre-hearing disclosure process. The same broadly applies to tax appeals before the Federal Fiscal Court, which may conduct or order further investigations.<\/p>\n<p>Financial criminal proceedings are likewise not subject to common-law discovery. In administrative financial criminal proceedings, the financial criminal authority gathers and assesses the evidence and may require information or documents relevant to the investigation; the accused has access to the investigation file and may submit evidence.<\/p>\n<p>Serious financial offences before the ordinary criminal courts are governed by the Code of Criminal Procedure. The public prosecutor directs the investigation, with the financial criminal authorities acting with criminal-police powers, while the court conducts the trial and ultimately assesses the evidence. The accused has access to the file and may request the taking of evidence, but there is no broad reciprocal discovery process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are witnesses called to give evidence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. In ordinary tax proceedings, the tax authorities may summon and examine witnesses where their evidence is relevant, and the taxpayer may request that particular witnesses be heard. The same applies before the Federal Fiscal Court. In practice, however, tax disputes are predominantly document-based and witness evidence is generally used where factual issues cannot be resolved sufficiently from the written record.<\/p>\n<p>Witnesses may also be called in financial criminal proceedings. The financial criminal authority or criminal court may examine witnesses, and the accused may request that relevant witness evidence be taken.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the burden of proof rest with the taxpayer on an appeal against an assessment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Austrian tax appeal proceedings, the burden of proof does not generally rest with the taxpayer merely because they challenge an assessment. The Austrian tax authorities, and on appeal the Federal Fiscal Court, must establish the facts relevant to the tax liability and consider circumstances both for and against the taxpayer. The taxpayer must, however, cooperate and substantiate matters within their knowledge, particularly when claiming deductions, exemptions or other Austrian tax benefits, or where foreign circumstances are involved. It should be noted that in tax proceedings, the standard of proof for a tax-relevant fact is set with 50.01%; accordingly, only proof on the balance of probabilities is required.<\/p>\n<p>Financial criminal proceedings are different. The financial criminal authority or prosecution must establish the offence and the accused\u2019s culpability; the accused is not required to prove their innocence. In administrative financial criminal proceedings, unresolved doubts may not be treated to the accused\u2019s disadvantage. The standard of proof is beyond 80%. The same principle applies before the ordinary criminal courts under the presumption of innocence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does an appeal usually take to conclude?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In our experience, an Austrian tax appeal before the tax authorities typically takes approximately 8 to 12 months. If the tax dispute is referred to the Federal Fiscal Court, a further 2 to 3 years should generally be expected, although complex Austrian tax cases may take considerably longer. Appeals to the Administrative Court or Constitutional Court may substantially extend the overall duration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the taxpayer have to pay the assessment pending the outcome of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, as a general rule. Filing an appeal does not suspend the enforceability or collection of the assessed tax, which therefore remains payable. However, the taxpayer may apply for a suspension of collection (Aussetzung der Einhebung) for the disputed amount (\u00a7 212a FFC). If the statutory requirements are met, payment is deferred until the relevant stage of the appeal has been decided.<\/p>\n<p>If the appeal is unsuccessful, interest is generally charged on the suspended amount at a rate of 2% above the statutory base rate (\u00a7 212a FFC).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on who may conduct or appear in the appeal on behalf of the taxpayer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Professional representation is not mandatory before the tax authorities or the Federal Fiscal Court. A taxpayer may act personally or appoint an authorised representative, such as a tax adviser or lawyer (\u00a7 83 FFC).<\/p>\n<p>In administrative financial criminal proceedings, including appeals before the Federal Fiscal Court, the accused may generally defend themselves or be represented by qualified defence counsel or a tax adviser (\u00a7 77 FinStrG). Proceedings before the ordinary criminal courts are more restrictive. Defence is generally conducted by a lawyer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a cost-shifting system whereby the losing party pays the winning party\u2019s legal and professional costs of an appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In ordinary tax proceedings before the tax authorities and the Federal Fiscal Court, the taxpayer generally bears its own legal and professional costs, irrespective of the outcome. Proceedings before the Federal Fiscal Court are generally free of charge.<\/p>\n<p>Before the Administrative Court and the Constitutional Court, a successful taxpayer may likewise recover only a limited fixed amount of costs, which will generally cover only a small part of the actual legal expenses incurred.<\/p>\n<p>A successful appellant who has already paid the disputed tax may apply for complaint interest (Beschwerdezinsen). If the tax is reduced, interest may be awarded on the overpayment at 2% above the statutory base rate. This compensates for the temporary loss of use of the funds; it is not a reimbursement of legal costs (\u00a7 205a FFC).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to use alternative forms of dispute resolution, such as voluntary mediation or binding arbitration? Are there any restrictions on when such alternative forms of dispute resolution may be pursued?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax law does not generally provide for voluntary mediation or binding arbitration in tax disputes. Austrian tax liabilities are determined by law and cannot be compromised by agreement between the taxpayer and the tax authorities. Austrian tax disputes must therefore be resolved through the ordinary administrative procedure and the available tax appeal process.<\/p>\n<p>Specific mechanisms apply to cross-border taxation. Unresolved double-taxation disputes may be addressed, for example, through a mutual agreement procedure under the applicable double tax treaty or under EU Tax Dispute Resolution Directive.<\/p>\n<p>However, there are alternative forms of dispute resolution in respect of transactions that have not yet been implemented (see Question 11).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right of onward appeal? If so, what are the levels of onward appeal before the case reaches the highest appellate court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Austrian tax proceedings, a decision of the Federal Fiscal Court may be challenged before the Administrative Court (Verwaltungsgerichtshof) by way of a revision, provided the Austrian tax case raises a legal question of fundamental importance. A separate complaint may be brought before the Constitutional Court (Verfassungsgerichtshof) where a violation of constitutional rights is alleged. These are the final domestic judicial remedies in an Austrian tax dispute.<\/p>\n<p>Financial criminal proceedings depend on whether the offence is dealt with administratively or by the criminal courts. Decisions in administrative financial criminal proceedings may be appealed to the Federal Fiscal Court and thereafter challenged before the Administrative Court or Constitutional Court on the same general basis. Serious financial offences are heard by the criminal court. Depending on the grounds of challenge, further remedies may lie to the Higher Regional Court (Oberlandesgericht) or the Supreme Court (Oberster Gerichtshof).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main penalties that can be applied when additional tax is charged? What are the minimum and maximum penalties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Late payment generally triggers a 2% surcharge (S\u00e4umniszuschlag) (\u00a7 217 FFC), followed by two further surcharges of 1% each if the amount remains unpaid. Late filing may result in a discretionary surcharge (Versp\u00e4tungszuschlag) of up to 10% of the tax assessed (\u00a7 135 FFC). If the tax authorities grant a deferral or instalment plan, deferral interest (Stundungszinsen) is generally charged at 4.5% above the statutory base rate (\u00a7 212 FFC).<\/p>\n<p>If the understatement also constitutes a financial offence, separate penalties apply in addition to the tax due. Depending on culpability and the offence, fines generally amount to at least 10% of the tax understated and may reach 100% for gross negligence and 200% for intentional tax evasion, with higher sanctions and even imprisonment possible in rare cases for aggravated offences.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If penalties can be mitigated, what factors are taken into account?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In ordinary tax proceedings, the late-filing surcharge (Versp\u00e4tungszuschlag) is discretionary and may range from zero to 10%. Relevant factors include the length of the delay, the degree of fault, the taxpayer\u2019s previous compliance record and any financial advantage resulting from the delay. Other interest charges arising under the tax procedure rules are generally calculated according to statutory rates and cannot be mitigated on discretionary grounds.<\/p>\n<p>In financial criminal proceedings, the penalty is determined according to the offender\u2019s culpability, taking into account all mitigating and aggravating circumstances. Relevant mitigating factors may include a previous clean record, a confession or cooperation, and payment of the tax loss. Personal circumstances and financial capacity are also taken into account when determining a monetary fine.<\/p>\n<p>Under Austrian tax law, a voluntary self-disclosure (<em>Selbstanzeige<\/em>) grants immunity from financial criminal prosecution if all statutory requirements are met. To be legally effective, the disclosure must satisfy the following strict criteria:<\/p>\n<ul>\n<li><strong>Timeliness:<\/strong> The self-disclosure must be submitted <em>before<\/em> the tax authorities have initiated criminal investigation proceedings against the applicant, and <em>before<\/em> the discovery of the offense by the authorities has become known to the applicant.<\/li>\n<li><strong>Full Disclosure:<\/strong> The applicant must completely disclose the facts of the tax evasion or violation, revealing all unrecorded income, assets, and relevant circumstances without gaps.<\/li>\n<li><strong>Identification:<\/strong> The disclosure must clearly identify the person or entity seeking immunity.<\/li>\n<li><strong>Payment of Evaded Taxes (Repayment):<\/strong> The evaded taxes or duties must be paid in full within the statutory deadline set by the authorities (usually within one month after the new tax assessment).<\/li>\n<\/ul>\n<p>If all these cumulative conditions are fulfilled, the self-disclosure acts as a personal ground for exemption from punishment (<em>Strafaufhebungsgrund<\/em>), meaning no monetary fines or prison sentences can be imposed for the disclosed tax offenses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Within your jurisdiction, what areas do you think are most likely to be subject to challenge over the next 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Over the next 12 months, we expect the Austrian tax authorities to maintain their focus on cross-border tax matters, particularly Austrian transfer pricing disputes, intra-group financing, withholding taxes and permanent-establishment risks. Cross-border transactions within multinational groups, including intra-group interest and royalty payments, are likely to remain under close scrutiny in Austrian tax audits.<\/p>\n<p>Audits will also continue to examine whether taxpayers have correctly implemented legislative changes since the previous audit period, particularly new substantive or reporting requirements. A current example is the Pillar Two regime, which imposes complex reporting and notification obligations on affected multinational groups.<\/p>\n<p>We also expect audits to become increasingly data-driven. Expanded automatic information exchange and access to structured third-party data are likely to intensify scrutiny of digital business models, digital-platform transactions and crypto-assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your opinion, are there any areas that taxpayers are currently finding particularly difficult to deal with when faced with a challenge by the tax authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers currently tend to find cross-border Austrian tax disputes particularly challenging, especially in the areas of transfer pricing and withholding tax. These Austrian tax audit cases are often highly fact-sensitive and may require taxpayers to substantiate functions and risks, intra-group arrangements, economic substance, beneficial ownership and the commercial rationale of a transaction, frequently by reference to extensive contemporaneous documentation and economic or valuation analyses.<\/p>\n<p>Taxpayers may also find domestic tax issues particularly challenging where the correct tax treatment depends on detailed factual assessments or valuation questions. Difficulties may arise where the underlying accounting records are formally complete but do not, on their own, sufficiently evidence the factual background or commercial rationale underlying the tax treatment adopted. Early and comprehensive preparation of the relevant documentation is therefore often critical when responding to challenges raised during a tax audit.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5354<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/150558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=150558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}