Decisions of the Swiss Federal Supreme Court (CW 52 - 2024)

Overview of the tax rulings of the Swiss Federal Supreme Court published between December 23 - 31, 2024:

Judgment of December 9, 2024 (9C_757/2023): Direct federal tax and state and municipal taxes 2020 (St. Gallen); Accumulated income from the units in the foreign investment fund is attributable to the taxpayer for the full year even if the units are acquired during the year and is taxable for the taxpayer. The issuing and paying agent fees are not deductible as acquisition costs. Dismissal of the taxpayer's appeal.
Judgment of November 25, 2024 (9C_3/2024) - for publication: Import duties 2020; From a procedural point of view, it was disputed whether and to what extent the appeal to the Federal Supreme Court was admissible. Insofar as the appeal challenged the tariff classification of the imported goods (cranberry fruit juice drink), the Federal Supreme Court ruled that the tariff complaint was inadmissible. However, the additional complaint that the transitional period under food law with regard to the reduced minimum content of cranberry fruit juice had been disregarded constituted an admissible legal complaint. In customs law, there is therefore a "splitting" in the federal court proceedings (no "door-opening function" such as international administrative assistance in tax matters). The appellant did not succeed with the admissible legal challenge. Dismissal of the appeal insofar as it was to be upheld.
Judgment of November 28, 2024 (9C_221/2024): The dispute concerned the duty-free import of works of art for museums open to the public. Before the Federal Supreme Court, the appellant complained in particular of a violation of the right to be heard, as the lower court had not dealt with various statements made by the appellant and had raised new allegations that had not yet been made in the previous proceedings without giving the appellant the opportunity to comment (prohibition of surprise). The Federal Supreme Court upheld the objections raised and found a violation of the right to be heard and referred the case back to the lower court for a new decision.
Judgment of December 2, 2024 (9C_256/2024): VAT 2009; With the letters announcing an inspection to the companies managed by the taxpayer, the FTA also broke the relative limitation period (absolute limitation period is 15 years according to Art. 49 and 50 aMWSTG applicable to the tax period in question) in the (administrative) criminal proceedings against the taxpayer. Dismissal of the taxpayer's appeal.
Judgment of December 2, 2024 (9C_370/2024): VAT 2011-2015; it was undisputed that the tax periods 2011-2013 were absolutely time-barred. Since the taxable person did not fulfill the objective criminal offense of fraudulent performance and tax fraud pursuant to Art. 14 para. 2 VStrR, the five-year limitation period pursuant to Art. 42 para. 1 MWSTG (instead of the seven-year period pursuant to Art. 11 para. 1 VSTrR) remains applicable. As they were not interrupted in good time, the 2014-2015 tax periods are relatively time-barred. Approval of the taxpayer's appeal.
Judgment of December 2, 2024 (9C_479/2024): Bezugsteuer 2014-2017; The dispute was whether the appellant company established a permanent establishment with a call center service provider based abroad that it had commissioned, meaning that the services received for this permanent establishment were not subject to purchase tax. However, the appellant was not able to show that the lower court's findings and assessment of the facts violated federal law. This also applies to the finding that some of the benefits were provided by self-employed persons and not - as claimed - by employees. Dismissal of the appeal by the liable party.
Judgment of December 9, 2024 (9C_354/2024): State and municipal taxes (Zurich) and direct federal tax 2020; The present case concerns the tax qualification of a payment of school fees in the amount of CHF 12,000, which A. received from her divorced husband for their daughter, who was under her sole parental care. There is no question that the taxpayer received the payments in question as a parent for a child under her parental care and thus fulfilled the elements of Art. 33 para. 1 lit. c DBG. The offsetting of the payment against taxable income complies with federal law. Dismissal of the taxpayer's appeal.
Judgment of December 2, 2024 (9C_251/2024): State and municipal taxes 2012-2015 (Geneva) and direct federal tax; fine for tax evasion; Art. 181 para. 3 DBG provides that in the event of tax evasion, the organs of the legal entity are also held personally liable in addition to the liability (as the main offender) of the legal entity if they acted intentionally as instigators, accomplices or representatives. This is fulfilled in the present case, as the complainant actively contributed to the company's tax evasion by making cash withdrawals. Dismissal of the complainant's appeal.
Judgment of December 16, 2024 (9C_433/2024): VAT 2014-2017; The Federal Supreme Court confirmed the decision of the Federal Administrative Court A-4980/2022 (see our blog post from 30.06.2024).
Judgment of December 17, 2024 (9C_487/2024): State and communal taxes 2005-2007 (Vaud) and direct federal tax; Absolute limitation period; In any case, the absolute limitation period occurs ten years after the end of the year in which the taxes were legally assessed, whereby the expiry of the appeal period is decisive. Partial approval of the taxpayer's appeal.
Judgment of December 17, 2024 (9C_651/2024): State and communal taxes 2008-2016 (Geneva) and direct federal tax; Late objection; If the taxpayer does not disclose a domicile for service in Switzerland (or of a representative in Switzerland), rulings and decisions can be validly served on him by publication in the Official Gazette. Service is effected on the day of publication. Rejection of the taxpayer's appeal.