Under American civil law, an S corporation is considered a corporate entity; for tax purposes, however, it is deemed a pass-through entity. Therefore, S corporations combine the benefits of transparent taxation with the advantages of limited liability on corporate level. German and Austrian fiscal authorities regard these advantages to be excessive, and both seek to create a right of taxation for their country via profit allocation. Yet it is ironic that the German and the Austrian “solution” contradict each other. This leaves the question as to which fiscal authority is correct in its treaty interpretation. Neither is, say Gernot Brähler, Christoph Scholz, and Stefan Schmiedel, and show that both approaches unduly attempt to establish multiple taxation of corporate profit.