- The Austrian Federal Ministry of Finance clarified input VAT deduction rules for services with fraudulent cover invoices.
- A construction contractor’s input VAT deductions were denied due to fraudulent invoices and lack of records.
- The Federal Finance Court allowed the Tax Office to estimate additional turnover due to missing or falsified records.
- The true economic substance is key in assessing tax liability for fraudulent transactions.
- Estimating operating expenses like undeclared wage payments to unregistered employees is allowed.
- Assessment procedures can be conducted against the taxpayer’s partners after termination without separate legal personality.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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