Taxes

The Federal Court examined whether compensation for waiving the right of usufruct is taxable income or tax-exempt capital gain. The decision was in favor of tax-neutral asset restructuring, since the right of usufruct is inalienable.

Capital gains tax can be deferred if a new replacement property is acquired after the sale of the old one; without a new replacement property, it will be taxed later. The Federal Court decided that upon expiration of time, the profit belongs to the region of the new property, deadlines set by the SSK are not binding.

Professional expenses for commuting between home and workplace, such as bicycle and public transportation costs, are cumulatively tax deductible according to the Federal Court. The Federal Court thus strengthens the flexibility in the choice of transportation for commuters.

The inheritance tax depends on the canton of residence of the deceased; for real estate in other cantons, tax is levied through inter-cantonal tax assessment. The Federal Court confirmed that all heirs are liable for taxation regardless of the allocation of assets.

Child support is deductible from income after a divorce if it is paid to the custodial parent until the child reaches the age of majority. Direct payments to the adult child are not tax-deductible.

In most cantons, direct descendants and spouses do not pay inheritance or gift tax, while siblings often have to pay it. A case in the canton of Aargau, where an inheritance was renounced and converted into a gift, was judged as tax evasion and confirmed in court.

The Federal Court allows the deductibility of inheritance taxes as business expenses; excessive reductions by A. AG resulted in an overly high declaration of losses. Inheritance-related capital gains are tax-neutral, the correct loss amounts to 15,521 Fr.

Employers can submit expense regulations for approval to the canton in which they are based, which must be tax-exempt and recognized across cantonal borders. An employee contested the non-recognition of her flat-rate expense deduction despite official approval, and the tax appeal commission decided in her favor.

The Federal Court dismissed the complaint of the tax administration because the calculated depreciations were within the allowed FTA rates; the burden of proof lies with the authority. Depreciations are legitimate if the book value decreases due to use or time and must be justified on business grounds.