Overview of the tax law decisions of the Swiss Federal Supreme Court published in the week of 14 - 20 September.
- Judgement of 5 August 2020 (2C_1116/2018): Direct Federal Tax 2009 - 2011 (Glarus): International tax segregation of legal entities under the DBG in outbound relationships (without DTAs), binding effect Ruling; The methods of tax segregation developed for the intercantonal relationship can have problematic effects if they are transferred thoughtlessly to the international relationship. Accordingly, certain modifications seem permissible. Ruling in which "domestic turnover" (cost +50) is defined as taxable profit instead of world income calculation with subsequent exemption is contrary to federal law. The lower instance will have to determine whether the taxpayer could have recognized the incorrectness of the information and has already made appropriate arrangements (protection of confidence). Rejection with open outcome (approval) to the lower instance.
- Judgment of 18 August 2020 (2C_255/2020): Value added tax 2011-2014; spin-off, subjective tax liability, joint and several liability; it is disputed whether the spin-off, which is retroactively effective as of 1 January 2012, has an impact on the VAT allocation of the services in the second quarter of 2012. In the second quarter of 2012, the complainant issued all invoices in its name and provided the related services and is therefore considered to be a service provider. The newly founded AG could only become legally effective externally with the entry in the Commercial Register at the beginning of July 2012. A retroactive restructuring is also irrelevant for VAT purposes. Rejection of the taxpayers' complaint (see also our article of 1 March 2020).
- Judgment of 20 August 2020 (2C_858/2019): State and municipal taxes 2013 (Aargau); the disputed issue is the qualification of a property for property tax purposes. If a piece of land is classified as being used for agricultural purposes, the income value must be recorded for the purposes of property tax. The property is still under construction in the relevant tax period. The family lives in a house on another property that is located on the farm parcel. The new building will not be used for agricultural purposes in the 2013 tax period. Dismissal of the taxpayers' complaint.
Non-entry decisions / administrative assistance:
- Judgment of 17 August 2020 (2C_493/2019): Administrative assistance DTA Switzerland - Netherlands; question whether, in view of the different language versions (French, Dutch, English), the requesting state must have exhausted "all available" means or "all usual" means; the latter is the case. The complaint of the persons concerned is dismissed, in so far as it is relevant (see our contribution of 26 May 2019).
- Judgment of 17 August 2020 (2C_514/2019): Administrative assistance DTA Switzerland - Netherlands; question whether, in view of the different language versions (French, Dutch, English), the requesting state must have exhausted "all available" means or "all usual" means; the latter is the case. It does not automatically follow from the letter from the requesting authority, which states that it cannot guarantee that the person concerned will not be prosecuted, that it will forward the information without the consent of the competent Swiss authorities. The complaint of the person concerned is rejected to the extent that it is admissible (see our contribution of 23 June 2019).
- Judgment of 17 August 2020 (2C_864/2019): Issues similar to those of the judgment of 17 August 2020 (2C_514/2019), for which reference is made to the summary; the complaint of the person concerned is dismissed in so far as it is relevant (see our contribution of 3 November 2019).
- Judgement of 1 September 2020 (2D_37/2020): State taxes 2013 and 2014 (Basel-Stadt); the appeal will not be considered.
Decisions are listed chronologically by publication date.
