The tax administration of the Canton of Basel-Stadt has published its tax practice (BStP) edition March 2018.
The tax administration of the canton of Basel-Stadt is devoting the following decisions in the published BstP issue March 2018:
- Decision of the Tax Appeal Commission of the Canton of Basel-Stadt dated 28 September 2017 (STRK.2017.10): Wealth tax: valuation of unlisted securities, confiscatory taxation. Confiscatory taxation of assets can be assumed if the assets remain permanently or long-term unprofitable or generate a very low return that is far below the cantonal average and therefore possibly lower than the total tax burden. If the wealth and income taxes exceed the income from securities in the long term, it cannot be concluded that this will shake the taxpayer's securities assets to their core. In this case, it must be examined to what extent the profit distribution of the company is in proportion to the freely available net profit. If, despite a high net profit, a small dividend is paid out, with which the income and wealth tax on the securities and their income cannot be paid, the asset substance may nevertheless not be eroded, because the intrinsic value of the company and thus the intrinsic value of the shares increases simultaneously.
- Decision of the Tax Appeal Commission of the Canton of Basel-Stadt dated 27 April 2017 (STRK.2016.057): Procedure, revision, due diligence. The revision of legally binding assessment orders is excluded if the taxpayer could have already submitted the defects complained of in the ordinary appeal procedure with reasonable care. High standards of care are required, especially in the case of official assessments. The taxpayer may not demand an audit if he would have had the opportunity to complain about the alleged defects in the ordinary procedure. The reason for exclusion of due diligence shall also apply in the event of the acceptance of a supra-legal reason for revision.
- Judgment of the Administrative Court of the Canton of Basel-Stadt of November 2, 2017 (VD.2016.249 + 250): Income from employment, taxation of scholarships. The award of a fellowship for research purposes is generally taxable if the benefits paid (together with other income, if applicable) exceed the living wage. Only support benefits to needy persons are exempt from income tax if the total income, together with other income of the taxpayer, does not exceed the relevant income under the Federal Law on Supplementary Benefits (ELG). If the scholarship payments (together with other income, if applicable) do not exceed the cost of living, they may still be subject to income tax, namely if they are dependent on the payment of a consideration. In casu Denial of consideration for a postdoctoral fellowship awarded by the Swiss National Science Foundation (SNSF)
- Judgment of the Administrative Court of the Canton of Basel-Stadt 29 October 2017 (VD.2017.163): Real estate gains tax, brokerage commission. With a brokerage agreement, the broker is instructed to provide evidence of the opportunity to conclude a contract or to mediate the conclusion of a contract in return for a fee. In the case of economic links between the seller of the property and the broker, it must be checked whether there is a simulation or tax avoidance. In the case of a brokerage agreement between the seller of the real estate and a person economically connected with him, the case law of the Administrative Court assumes tax avoidance and therefore denies the deductibility of the brokerage commission if it must be concluded from the circumstances that the taxable seller would not have concluded the same agreement with an uninvolved third party. In casu, the commission corresponding to 3.68 % of the purchase price does not appear unreasonable.
The BStP issue March 2018 is available here.
