Clarification on legal information and tax rulings (tax rulings)

On 29 April 2019, the Federal Tax Administration (FTA) published details of the Code of Conduct on the provision of legal information and rulings in the areas of value-added tax and business taxation for radio and television as well as advance tax assessments (tax rulings) for the areas of direct federal tax, withholding tax and stamp duties.

Legal information and rulings in the field of value added tax:

The FTA is responsible for providing information in the field of VAT. The legal information provided by the FTA concerns domestic tax and subscription tax. The FCA is responsible for providing legal information in the field of import tax, and requests for such information should be addressed to this authority.

Upon written request by a taxable person, the FTA must provide information on the VAT consequences of a specifically described situation within a reasonable period of time. Information is legally binding for the requesting taxpayer and for the FTA as long as there is no change in law or practice. The information cannot be related to any other facts. Incorrect information is binding on the FTA if the taxpayer could not easily recognise the incorrectness of the information. Information usually relates to a future matter, but may also concern matters that have already ended. Information does not interrupt the limitation period. If the taxpayer does not agree with the information provided, he may request a challengeable decision.

Legal inquiries can be submitted electronically or by post.

All details are available here.

Legal information and rulings in the field of corporate tax for radio and TV:

Since 1 January 2019, the FTA has been responsible for collecting the corporate tax on radio and TV and thus also for processing requests in this area.

The FTA must inform a requesting taxpayer within a reasonable period of time about the tax consequences of a specific, detailed circumscribed situation. The information provided is intended to help taxpayers understand how to classify a specific situation under the business tax in order to correctly fulfil their tax obligations.

In order for a taxable person to rely on good faith, the following five conditions must be cumulatively met:

the authority has acted in a specific situation in relation to a particular person;

it has or would have acted within its authority;

the recipient could not readily identify the incorrectness of the information;

he has made appropriate dispositions in confidence in the correctness of the information, which cannot be reversed without disadvantage;

the legal order has not changed since the information was provided.

Legal inquiries can be submitted electronically or by post.

All details are available here.

Formal procedure for advance tax assessments / tax rulings in the areas of direct federal tax, withholding tax and stamp duties:

With its Communication of 29 April 2019, the FTA clarifies the code of conduct for tax authorities, taxpayers and tax consultants drawn up in 2003 by the Swiss Tax Conference, the FTA and the then Swiss Institute of Certified Accountants and Tax Consultants (now EXPERTsuisse) together with the scientific community (published in Swiss Trustee 2003, p. 1113 ff.).

In addition to information on the definition, delimitation, effects and revocation of a tax ring, the responsibilities of the FTA and the spontaneous exchange of information (SIA), the following clarifications in particular were published

Requirements for the form and content of a tax ring:
- The submission of a tax ring to the FTA is always in written form. Tax rulings by legal representatives must include the relevant written powers of attorney without being asked. The legally relevant facts must be presented clearly and completely in a short form that is limited to the essentials. The natural and legal persons involved shall be identified and clearly identified. The tax ruling contains its own legal assessment of the relevant facts and one or more clearly formulated tax proposals. It contains the necessary explanatory annexes.
- The tax ruling must be written in an official Swiss language. Any translations are at the expense of the taxable person. In consultation with the FTA, enclosures can also be left in the original language (especially English).