Overview of the tax rulings of the Swiss Federal Supreme Court published between June 17 - 23, 2024:
- Judgment of June 5, 2024 (9C_409/2023): Direct federal tax and cantonal and communal taxes 2010 - 2015 (Valais); At issue is, on the one hand, the taxation of the profit from the sale of the condominium unit and, on the other hand, the qualification of the taxpayer's participation in the GFA (Groupement foncier agricole). The court rightly qualified the condominium unit as business assets and therefore the sale is subject to income tax. The taxpayers are of the opinion that Switzerland cannot tax the disputed income and assets from their shareholdings in the GFA. Under Swiss law, the GFA qualifies as a foreign legal entity with its own legal personality. Under French domestic law, GFAs are taxed transparently. In accordance with Art. 6 para. 1 in conjunction with 2 DTA CH-FR and Art. 24 para. 1 section 2 DTA CH-FR , the shares in the GFA are generally taxable in France. Without proof of taxation in France, the exemption by Switzerland pursuant to Art. 25 B para. 1 DTA CH-FR cannot apply. The taxation in Switzerland is therefore justified. Dismissal of the taxpayer's appeal.
- Judgment of May 27, 2024 (9C_277/2024): Direct federal tax and state and municipal taxes 2017-2018 (Ticino); individual taxation due to de facto separation; The complainant argued that she was not yet economically independent in 2017 and 2018 despite de facto separation, as she did not have her own bank account and used her husband's credit card. A joint assessment should be made for these years. According to the Federal Supreme Court, this circumstance cannot change the factual separation and thus the separate assessment of the spouses. Dismissal of the taxpayer's appeal.
- Judgment of May 29, 2024 (9C_526/2023): Direct federal tax and state and communal taxes 2020 (Vaud); deductibility of a purchase into an occupational pension plan due to divorce; the dispute concerned whether a purchase into an occupational pension plan due to divorce in the year before the partial withdrawal of the capital is deductible. In order to close the pension gap after divorce, the obligor divided this gap over the number of years until retirement age and made corresponding annual purchases. With regard to the last purchase, the tax authorities took the view that this constituted tax evasion. The cantonal court denied the existence of tax avoidance, which was confirmed by the Federal Supreme Court. Dismissal of the tax administration's appeal.
- Judgment of June 6, 2024 (9C_135/2023) - intended for publication: Direct federal tax (2015); the taxpayer had issued treasury shares as part of an employee share ownership program and booked the positive difference between the higher allocation value and the lower acquisition costs without affecting profit or loss in accordance with the accounting regulations under commercial law. It is disputed whether this gain recognized directly in equity represents a tax-neutral capital contribution or whether it should be offset as a taxable capital gain due to a tax law correction provision. It is clear that there are no correction standards in profit tax law that require a deviation from the annual financial statements prepared in accordance with commercial law. The capital contribution transaction is therefore tax-neutral. Dismissal of the FTA's appeal.
- Judgment of June 10, 2024 (9C_112/2024): VAT (2014-2017); tax exemption regarding fees for sporting events; the question in dispute was whether the payments made by organizers of equestrian events to the umbrella association Swiss Equestrian constitute taxable fees. The Federal Supreme Court confirmed the assessment of the lower court (see our article of February 18, 2024), according to which these payments constitute remuneration for taxable services (in particular administrative activities). The entry fee paid by the athletes to the organizers, on the other hand, constituted remuneration for sporting events within the meaning of Art. 21 para. 2 no. 15 MWSTG, which means that these are exempt from tax. Dismissal of the complainant's appeal.
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Decisions are listed chronologically by publication date.
