Decisions of the Swiss Federal Administrative Court (CW 14 - 2024)

Overview of the tax rulings of the Swiss Federal Administrative Court published between April 1 - 7, 2024:

Judgment of March 22, 2024 (A-581/2023): VAT, subsequent performance 2009; the present decision examines whether the lower instance was right to make an assessment at its due discretion. The FTA had initiated criminal proceedings against the taxpayer for various tax offenses by means of a ruling. According to the FTA's findings, parking spaces had been rented out to staff without VAT being charged. Furthermore, a bank account had not been listed in the sole proprietorship's accounts. In addition, books had been found in which handwritten receipts had been recorded that had not been entered in the business accounts. Finally, input tax deductions had been claimed on expenses for which the FTA had found no demonstrable business purpose. The FAC concludes that the lower court was obliged to make an assessment at its own discretion. In the present case, the absolute limitation period has not yet expired. However, the court also finds a slight (and remediable) violation of the appellant's right to be heard, which must be taken into account when determining the consequences in terms of costs and compensation. The appeal is therefore partially upheld in the amount of CHF 1,766. In all other respects, however, the appeal is dismissed.
Judgment of March 21, 2024 (A-1007/2023): VAT, taxability of managed care services 2017-2019; the appellant provided managed care services to health insurers. These services do not constitute medical treatment in the sense of VAT law and are taxable. Only with the entry into force of the partial revision of the VAT Act do managed care services that are provided to the health insurer as the recipient of the service, but are related to medical treatment, fall under the new tax exemption pursuant to Art. 21 para. 2 no. ^3bisVAT Act. Dismissal of the appeal.

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