Decisions of the Swiss Federal Administrative CourtCW 6 - 2025)

Overview of the tax rulings of the Swiss Federal Administrative Court published between February 3 - 9, 2025:

Judgment of January 24, 2025 (A-2677/2023): Withholding tax 2012-2016 (collection); Any subsequent conversion of monetary benefits (from several previous years) into a loan to the recipient of the benefits does not change the qualification of the benefits as monetary benefits on which withholding tax is to be levied. The notification procedure cannot then be granted, as a voluntary disclosure in this regard has been made to the cantonal tax administration in relation to the taxpayer, but not in relation to its shareholder (natural person). This means that it cannot be said with certainty that the shareholder has declared the pecuniary benefits paid to him in his tax return. However, this would be a prerequisite for the shareholder to be entitled to a refund of the withholding tax. As it is doubtful whether this requirement has been met, the notification procedure cannot be applied. Most of the taxpayer's appeal was dismissed.
Judgment of January 30, 2025 (A-1418/2023): Subsequent recovery of VAT (1st half of 2015 - 2nd half of 2017); the input VAT deduction claimed in relation to various incoming invoices of the taxable ordinary company was in dispute. The invoices in question did not show VAT, but contained the note "incl. VAT" or "TTC" (toutes taxes comprises). Insofar as the taxable person was able to prove through further documentation that the VAT was paid by it and invoiced by the suppliers, the input tax deduction was granted and the appeal was partially upheld in this respect.

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