Overview of the tax law decisions of the Swiss Federal Supreme Court published in the week of 25 - 31 January 2021.

  • Judgment of 16 December 2020 (2C_404/2020) - intended for official publication: Staats- und Gemeindesteuern 2016 (Aargau); Strittig war die Frage, ob Kosten einer ärztlichen Heilbehandlung abzugsfähig sind, die deshalb angefallen wurden, weil die Steuerpflichtige lediglich grundversichert war, aber eine Leistung einer Privatklinik in Anspruch nahm, dessen Kosten die Grundversicherung nicht auf kam. The deductions for the actual costs of illness and accidents are deductible, regardless of whether they could have been avoided by a different lifestyle. The prerequisite remains that the intervention or treatment is medically indicated. The additional hotel costs in the semi-private ward are not medically indicated, which is why this amount is part of the cost of living; complaint of the taxpayer partially upheld.
  • Judgment of 14 January 2021 (2C_498/2020): Withholding tax, non-cash benefits within the group, tax period 2005; The dispute in the present case is whether A. and C. AG, which is domiciled in Switzerland, are liable for the payment of a withholding tax amount, as C. AG had waived the proceeds from sales transactions in favour of companies of the group to which it belonged without receiving any consideration in return. C. AG took the position that the proceeds were attributable to the foreign group companies. This argument was rejected. It conducted the sales transactions in its own name and for its own account, but the proceeds flowed to group companies which are related parties. Moreover, A. is the ultimate beneficiary of the group. The unusual nature of the disputed payments was readily apparent to both A. and C. AG. The joint and several liability for the relevant amount is therefore lawful. Dismissal of the complaint of A. and C. AG.
  • Judgment of 12 January 2021 (2C_6/2021): direct federal tax and state and municipal taxes 2016 (Zurich), after-taxes; the taxpayer made a purchase of CHF 45,000 in 2016 and received a lump-sum benefit of CHF 20,813 in 2019. The objectified three-year vesting period within the meaning of the BVG is thus violated; dismissal of the taxpayer's appeal.

Non-entry decisions / administrative assistance:

Decisions are listed chronologically by publication date.

Tax topics covered in this post:
Income Tax
Withholding Tax