Decisions of the Swiss Federal Administrative Court (CW 19 - 2022)

Overview of the tax law decisions of the Swiss Federal Administrative Court published between 9 - 15 May 2022:

Judgment of 12 April 2022 (A-4452/2021, A-4454/2021): VAT (1st - 4th quarter 2016). In summary, the taxpayer complained that in view of the de facto absence of inflation for ten years, a default interest rate of 4% no longer compensated for an interest disadvantage suffered by the creditor as a result of the debtor's default; According to the ruling, there is a legal basis for charging default interest; The default interest rate of 4% is "customary in the market" and appears to be lawful, also in consideration of the legislator's leeway; The default interest rate is neither a penalty under criminal law, nor does the statement that default interest is owed express an accusation relevant under criminal law; Dismissal of the taxpayer's appeal.
Judgment of 28 April 2022 (A-3107/2021): Customs; freezing order; In the present case, the complainant undisputedly submitted his submission to the Federal Administrative Court after the 30-day appeal period had expired. Since the Federal Administrative Court does not hear late appeals, it does not deal with the matter; dismissal of the appeal.
Judgment of 27 April 2022 (A-3346/2020): AlkG; Distillery licence; Spirits tax; By order of 18. December 2019, the Federal Customs Administration , in particular, withdrew the contract distillery licence and the commercial distillery licence from the person liable to pay the duty and demanded the spirits tax; The person liable to pay the duty had repeatedly violated the conditions and requirements associated with the licences and thus violated the alcohol legislation; In particular, since 2016, he has not kept any alcohol accounting records at all on his activities as a commercial distiller, which serve as a basis for the tax declaration; The medical certificates attached to the objection and the appeal do not show that the complainant was incapacitated for the entire period during which he should have prepared or submitted the accounting records, tax warehouse declarations and production declarations. The lower instance was forced to make the assessment on the basis of its own findings and in part on a discretionary basis; the lower instance was right to base the assessment in this case on the inventory, since the tax claim arises, among other things, when distilled waters are transferred from the tax warehouse to free circulation under tax law; dismissal of the appeal by the taxpayer.
Judgment of 13 April 2022 (A-6558/2020): VAT; services to closely related persons; third party price; subsidy (1st quarter 2012 - 4th quarter 2016): Rental prices between the minority shareholder and the complainant must stand up to third-party comparison, which is considered to be fulfilled after an expert opinion has been carried out. Funds that originate from institutions (such as Loterie Romande or Swisslos) and are distributed by them, by intermediaries (e.g. Sport-Toto-Gesellschaft) or by a community on the basis of legal provisions are considered subsidies. The input tax reduction made by the FTA proves to be justified. Partial dismissal of the taxpayer's appeal.

Decisions in the area of administrative assistance / non-admission: