Depreciation of misinvestments

In case a taxpayer wishes to do a current-value depreciation, he has to provide evidence, that there actually is a reduction in value. He may also use an expert opinion furnished by the tax authority as “his” evidence. Furthermore, value-impairing factors, which were already present at the time of acquisition, cannot be left out, as far as they still existed at the balance sheet date and as far as the taxpayer until then acquires knowledge thereof. Thus, a lower partial value as a result of a bad investment has to be disclosed on the balance sheet date if the entrepreneur knew or had to know about it at the time the balance sheet was created. The nature of a misinvestment lies specifically in the fact that an originally wrong measure turns out to be a mistake at a later time. [VwGH (Austrian Administrative Court) 21.04.2016, 2013/15/0100]