Overview of the tax law decisions of the Swiss Federal Administrative Court published in the week of 27 April - 3 May 2020.
- Judgment of 15 April 2020 (A-3797/2019): VAT; electricity supply; basis of assessment (levy to the community; 2016 and 2017); the question to be examined was whether the 'levy to the community' at issue in the present case is part of the relevant VAT charge (and thus basis of assessment) which the final consumer of electricity owes to the taxable person as network operator for the supply of electricity. Since an internal economic link between the electricity supply (service) on the one hand and the total electricity price (charge) on the other hand is fulfilled in the present case, and since this link results not least from the fact that the electricity supply or the receipt of the electricity would not be technically possible at all without the use of public land, the electricity price in its entirety constitutes the assessment basis for levying VAT. Rejection of the taxpayers' complaint.
- Judgment of 15 April 2020 (A-5748/2019): Radio and television reception fees; the clear wording of the law precludes retroactive deregistration from Billag and accordingly, for the disputed period from 1 July 2014 to 31 October 2014, private radio and television reception at a secondary residence is subject to a fee. Dismissal of the complaint of the party liable to pay the fee.
- Judgement of 28 October 2019 (A-355/2018): VAT 1st quarter 2010 to 4th quarter 2011; the Federal Supreme Court did not respond to an appeal against the decision of 9 March 2020; see our contribution of 22 March 2020 and our contribution of 10 November 2019.
- Judgment of 20 April 2020 (A-2304/2019): VAT; services to closely related persons (2012-2015); the taxpayer operated, among other things, an architectural office; two sister companies without infrastructure/staff were, according to the Commercial Register, intended to provide services in the real estate sector. Based on the circumstances, the FTA was entitled to assume that the turnover generated by the sister companies was only possible through corresponding services provided by the taxpayers, which were services to closely related persons (as defined in the version applicable at the time). However, no corresponding records were available. The fees estimated by the FTA on the basis of the resale price method are not objectionable in the present case; rejection of the taxpayers' complaint.
- Ruling of 31 March 2020 (A-6214/2018): Withholding tax (pecuniary benefit); the existence of a pecuniary benefit is affirmed because the complainant A AG paid the purchase price for the acquisition of the disputed domain e.fr twice to its sister company domiciled in Germany. This was done in that the valid purchase agreement for 66 domains (including the domain e.fr) dated 9 March 2008 was amended on 25 May 2009 - for the purpose of deleting the domain - without consideration on the part of the sister company and the rights of use to the said domain were subsequently transferred to the complainant by purchase agreement dated 31 May 2009 for EUR 105,000 or CHF 157,320. The taxpayer's appeal is dismissed insofar as it is upheld.
Decisions in the field of administrative assistance:
- Judgement of 21 April 2020(A-4069/2019): Administrative assistance former double taxation agreement Switzerland - USA (aDBA CH-USA); the appeal is partially upheld.
Decisions are listed chronologically by publication date.
