Overview of the tax law decisions of the Zurich Tax Appeal Court published in June and July 2020.
- StRG ZH, 21 April 2020, ST.2019.150: Insurance premium deduction (this decision is legally binding); since 2014, premium reductions have to be paid directly to the insurer by the competent authority. No taxable income is accrued by the taxpayer to the extent of these premium reductions. Insurance premiums are not deductible if they are covered by the premium reductions. The taxpayer received supplementary benefits which include a flat rate for health insurance premiums. In the present case, the lump sum exceeded the effective health insurance premiums. Under these circumstances, no deduction is possible for the fully covered insurance premiums. The excess part of the lump-sum premium reduction is a tax-free supplementary benefit. Interest on savings capital (as well as premiums for any private supplementary/accident or life insurance policies) can still be claimed as part of the insurance premium and savings interest deduction. Rejection of the recourse, as there is no effect on taxable income in the present case.
All decisions of the Tax Appeal Court of Zurich can be accessed here.
