Decisions of the Swiss Federal Court (CW 34 - 2018 )

Overview of the tax law decisions of the Swiss Federal Supreme Court published in the week of 20 - 26 August 2018.

Judgment of 2 August 2018 (2C_1042/2017): Direct Federal Tax and State and Municipal Taxes 2008 (Zurich); income tax; offsetting a debt waiver against taxable income; a debt waiver in connection with the business debt of a self-employed person constitutes a genuine restructuring service and thus earned income within the meaning of Art. 18 para. 1 DBG (E. 2.1.); qualification of the sale of real estate as a self-employed activity (real estate dealer); dismissal of the taxpayer's appeal.

Judgment of 30 July 2018 (2C_1075/2017): Direct federal tax and state and municipal taxes 2008 - 2009 (Schwyz); offsetting of profit share from construction consortium; the findings of the lower court regarding membership of the simple partnership (construction consortium) and its profit distribution are not arbitrary; dismissal of the taxpayer's appeal.

Judgment of 3 August 2018 (2C_548/2018): Direct federal tax 2011(Aargau); differentiation hobby vs. self-employment in relation to a part-time agricultural business.

Judgment of 3 August 2018 (2C_721/2016), official publication scheduled: Import tax. Imports of Alberto Giacometti's works by his heirs are not covered by the tax-exempt imports under either the old or the new law. Nor does the agreement on the importation of educational, scientific or cultural goods provide for an exemption in this case; dismissal of the taxpayers' complaint.

Judgment of 7 August 2018 (2C_630/2018): Direct federal tax and cantonal and communal taxes 2010 - 2011 (Valais); business losses; loss offsetting was not permitted due to the lack of reporting of the loss in the annual financial statements Rejection of the taxpayers' complaint.