According to the German Federal Fiscal Court (Bundesfinanzhof; BFH), the subordination of a participating loan combined with a debtor warrant by which a redemption is exclusively tied to future annual surpluses or possible liquidation proceeds cannot be subject to partial income tax neutrality only: To the extent of its partial value, the subordinated participating claim shall be treated as a shareholder’s contribution, whereas the non-recoverable amount shall increase taxable income. From an economic point of view, the effects of such a subordination should be equivalent to those of a claims waiver. However, a closer examination shows that the conclusions of the German Federal Fiscal Court cannot be transferred to the Austrian legal situation.