On April 15^th, 2021, RV/7101907/2016, the Austrian Federal Tax Court (BFG) rendered a decision on how an income allocation conflict between Austria and Switzerland has to be resolved. As far as the court’s published decision has given insight into the facts of the case that factual situation might be summarized in short as follows: Mr. J, a programmer of digitalized services, was a resident of Austria who had established a Swiss company (K-GmbH) of which he became the general manager. He thus could use the company to conclude the respective programming contracts with his clients, which he then had to carry out in person. The fees paid by the clients for such digital services had been subjected to Swiss taxation in the hands of the K-GmbH. According to Austrian law, under certain conditions as prevailing in the present case, the fees paid by the customers for J’s programming work had to be allocated to J. Thus the law disallowed channeling them through his Swiss company. Under Swiss law, however, such special anti-abuse rule did not exist so that the legally valid contracts between the clients and the Swiss company generated taxable income of the Swiss company. According to the deci...