Overview of the tax law decisions of the Swiss Federal Administrative Court published in the week of 25 - 31 October 2021.

  • Ruling of 5 October 2021 (A-4642/2020): Withholding tax, pecuniary benefit; A pecuniary benefit within the meaning of withholding tax may also exist if translated salary payments or compensation are paid to related persons. Translated fees paid to the beneficial owner of the company and to a director of a group company resident abroad qualify as a benefit in kind if their appropriateness is not proven. Dismissal of the appeal.
  • Judgment of 27 September 2021 (A-2953/2020): Value-added tax (2012-2016); Decision of 12 March 2020; In the present proceedings, it was disputed whether the retroactive correction of the VAT levied by the complainant on the rent for the buildings was lawful or whether the disputed invoicing of the rents with VAT was tantamount to opting for VAT, whereby a retroactive correction is no longer possible after the expiry of the relevant deadlines. The Federal Administrative Court concludes that the requirements for an appeal are not met in casu. Dismissal of the appeal.
  • Judgment of 23 September 2021 (A-4316/2020): Customs; tariff classification ("Sugar coated cashews, peanuts"); In the present proceedings, the classification of the imported goods under tariff heading 1704.9020 (sugar confectionery of all kinds containing fruit, including fruit pastes, nougat, marzipan and the like) or under tariff heading 2008.1990 (preparations of vegetables, fruit or other parts of plants) was in dispute. The Federal Administrative Court concluded that it could be assumed that the nuts had a sugar coating. Due to the coating of the nuts with sugar (and honey), they were to be assigned to tariff heading 1704.9020. Dismissal of the appeal.
  • Judgment of 12 October 2021 (A-1336/2020): Value added tax, tax periods 2007 - 2012 (discretionary assessment); it is to be assumed that the complainant did not keep a daily cash book, which means that the prerequisites for a discretionary assessment are met. The lower court based the present estimate on empirical figures from taxi companies, which is not objectionable according to case law. The absolute statute of limitations for the VAT claim from 2010 came into effect on 1 January 2021. The taxpayer's appeal is upheld with respect to the 2010 tax period, but dismissed for the rest.

Decisions in the field of administrative assistance:

Decisions are listed chronologically by publication date.

Tax topics covered in this post:
International Tax
Treaties
Value Added Tax (VAT)
Custom Duties