Action in the case Austria v Germany. Action concerning discrepancies between Austria and Germany in their views on the interpretation and application of Article 11 of the German-Austrian Double Taxation Convention.
Austria objects to Germany characterising the income from the profit-participation certificates as interest with a ‘profit participation' element within the meaning of Article 11(2) of the German-Austrian Double Taxation Convention. Contrary to the position of Germany, Austria takes the view that the certificates at issue confer solely an entitlement to interest calculated on the basis of a fixed percentage of the nominal value.
2