Overview of the tax law decisions of the Swiss Federal Supreme Court published in the week from 28 October to 3 November 2019.

  • Judgment of 4 October 2019 (2C_203/2017): State and municipal taxes 2009 (Aargau). A capital payment received as compensation for future care costs of a disabled person is fully subject to wealth tax due to the principle of substance taxation and the principle of taxation of assets according to economic capacity. Consequently, the complaint was dismissed. However, it should be pointed out that, in exceptional circumstances such as those of the present individual case, equity must be satisfied by granting a tax waiver.
  • Judgment of 1 October 2019 (2C_592/2018): State and municipal taxes (Zurich and Appenzell Ausserrhoden); tax sovereignty ab. 1.1.2011. Main tax domicile is at the place of effective administration (ZH). With regard to conflicting tax claims, the taxpayer has forfeited his right to challenge the legally binding cantonal assessment (AR) due to untrue conduct. Rejection of the complaint.
  • Judgment of 9 October 2019 (2C_383/2018): Direct federal tax and state and municipal taxes 2013 - 2014 (Ticino); monetary value of benefits; hidden profit distributions. In the present case, the complainant is an undertaking engaged in fiduciary activities. For the tax periods 2013 and 2014, the Tax Administration of the Canton of Ticino has established the existence of monetary benefits in the form of hidden profit distributions. This was confirmed by the Camera di diritto tributario. On the other hand, the complainant alleges infringement of the prohibition of arbitrariness and of the right to be heard. The Federal Supreme Court recalled that a violation of Art. 9 of the Federal Constitution only exists if the court of fact misuses its discretion, in particular draws manifestly untenable conclusions, overlooks substantial evidence or arbitrarily disregards such evidence. With regard to the 2013 tax period, the BGer dismissed the complaint: both the tax administration and the "Camera di diritto tributario" fulfilled their obligation to state reasons and therefore violated neither the prohibition of arbitrariness nor the complainant's right to be heard. For the 2014 tax period, the BGer approves the appeal, as the existence of a monetary benefit cannot be clearly deduced from the statements of the tax authorities. Partial approval of the taxpayers' complaint.
  • Judgment of 19 September 2019 (2C_170/2019): Direct federal tax and state and municipal taxes 2015 (Basel-Landschaft); in 2015, the centre of life's interests remained in the canton of Basel-Landschaft, particularly as the complainants owned a property with more than twice as much living space as the apartment they rented in furnished condition at a rent of CHF 800 and the husband continued to work outside the canton; the taxpayers' complaint was rejected.
  • Judgment of October 1, 2019 (2C_726/2018): Administrative assistance; double taxation treaty Switzerland - Germany (DTA CH-DE); the information obtained by the information holder or the tax office regarding the shareholders of a company was contradictory. The FTA passes on in its answer to the requesting authority, the two different positions reflect. Accordingly, it becomes apparent to the foreign tax authority that the information is disputed or that part of it is materially incorrect and that further clarification is required. With this procedure, the FTA fulfills the purpose of administrative assistance, i.e. to provide information as quickly as possible in order to enable a correct assessment, and at the same time complies with the data protection principles contained in the protocol to the DTADE and in the DPA. Dismissal of the complaint by the data subject and the information holder.

Non-occurrence decisions / inadmissible complaints:

Decisions are listed chronologically by publication date.

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