Overview of the tax law decisions of the Swiss Federal Supreme Court published in the week of 29 November - 5 December 2021.

  • Judgment of 16 November 2021 (2C_678/2020): Direct Federal Tax and State and Municipal Taxes 2008 and 2010 (Geneva); Shareholder Loans; In dispute is whether the loans granted by the company to the complainant in 2008 and 2010 qualify as benefits in kind. The loan increased steadily and the interest on the debt was not paid but only debited to the shareholders' account. Moreover, the loan represented 20% of the book value of the company's assets and 36% and 38% of its equity. Although A.A.'s financial situation was good in view of his high income and considerable assets, his assets consisted almost exclusively of the company's shares, which called his ability to repay into question. He was also unable to prove that he had repaid the loan. However, it was not decisive in the present case whether the loan was simulated. A pecuniary benefit could already be affirmed due to the lack of arm's length conformity. Partial approval of the taxpayer's complaint regarding the scope of the benefit, otherwise dismissal of the complaint.
  • Judgment of 19 November 2021 (2C_501/2021): Direct Federal Tax and State and Municipal Taxes 2014-2016 (Bern); nullity, The discretionary assessments for the years 2014-2016 all became final. Since all available information was included in the discretionary assessment in the present case, there is no nullity. Dismissal of the appeal.

Non-occurrence / administrative assistance:

Decisions are listed chronologically by publication date.

Tax topics covered in this post:
Income Tax
International Tax
Treaties