Taxation of NFTs in the luxury industry - a case study
Non-fungible tokens ("NFTs" for short), i.e. unique cryptographic tokens representing physical or digital value, are currently on everyone's lips - at least since the NFT "Everydays: the First 5000 Days" was auctioned by Christie's in 2021 for USD 69.3 million. Using the NFTs of the watch brand DuBois et fils, which were issued for the first time in 2021, it will be shown how companies in the luxury sector can use NFTs both to market products and to build a close customer relationship, and which tax issues have to be taken into account.
Quasi-property trading - from the elasticity of the criteria
In its ruling, which was heard in public on October 13, 2022 and served on the parties in writing on March 30, 2023, the Federal Supreme Court dismissed the appeal of a married couple residing in the Canton of Zurich. It upheld the ruling of the Administrative Court of the Canton of Zurich, according to which the taxpayers had qualified as quasi-real estate dealers by selling a rented apartment building. The Federal Supreme Court based its decision on the fact that the taxpayers, who also held other rented properties in co-ownership, had taken a high financial risk when acquiring the property, had sold the property after a short holding period (5 ½ years), had spent a great deal of time managing the property during the holding period and had acquired it with the plan of achieving the highest possible profit upon sale. In their discussion of the ruling, the authors deal with the Federal Supreme Court's reasoning and explain why the ruling leads to legal uncertainties in practice.
Income tax-free repayment of a hidden capital contribution to the shareholder
The Federal Supreme Court had to decide for the first time whether the repayment of a hidden capital contribution to the shareholder constitutes taxable investment income or whether it can be made tax-free. After interpreting the term "repayment of contributions" in Art. 20 para. 3 DBG, it comes to the conclusion that hidden capital contributions also fall under this, that the accounting requirement from Art. 5 para. 1bis VStG is not relevant and that the repayment of a hidden capital contribution is income tax-free.
Algorithmically verified tax return in the ordinary mixed assessment procedure
The digitization of the tax area and, in particular, the automation of the assessment process are advancing. In the process, risk management systems can be used to automatically check the plausibility of tax returns. Such a risk analysis can lead to challenges under fundamental rights and data protection law, which must be countered in particular by creating specific legal foundations.
Adjustment of the price list regarding the Direct Federal Tax 2018
On 11 March 2019, the Swiss Federal Tax Administration (FTA) published an adjustment to the share price lists (ICTax) regarding the Federal Direct Tax 2018.
Circular "List of providers of recognised pension products of tied pension provision (pillar 3a)
On 8 February 2019, the Federal Tax Administration (FTA) published the circular "List of Pillar 3b endowment insurance policies eligible for surrender".
Increase in tax deductions for health insurance premiums
The Commission has also discussed two motions calling for an increase in the deductions for health insurance premiums in direct federal tax. The Motion Grin (17,3171), which would like to almost double the current deductions, was transferred with 9 to 3 votes. For the majority of commission members, health insurance premiums are compulsory charges and part of the unavoidable cost of living. Higher deductions are justified by this and by the strong growth in premiums over the last few years. A minority rejects the motion because higher incomes would benefit disproportionately. The motion Lehmann/Regazzi (15,4027), which wants to make self-paid health insurance premiums fully tax deductible according to income, was rejected by 8 votes to 4. The gradation is problematic and complicates the tax system.
FTA publishes withholding tax treatment of profits from the Money Gaming Act
On 6 February, the Federal Tax Administration (FTA) published a specialist information document on the withholding tax treatment of profits from the Money Gaming Act.
Residential property taxation: discussion of the preliminary draft commenced
The Commission for Economic Affairs and Taxation of the Council of States (WAK-S) has accepted without opposition the preliminary draft on the system change in the taxation of home ownership (17,400) and has largely conducted the detailed consultation.
Once more self-disclosures
Last year, the tax office of the Canton of Zurich received 7250 voluntary declarations, thus again significantly exceeding the record figure of the previous year (6200). This is due to the Automatic Information Exchange (AIA) of bank data, which came into force between numerous countries at the beginning of 2017. Since the possibility of voluntary reports without penalty (2010), the cantonal tax office had previously received 850 to 2100 such reports per year.
Greater fiscal consideration of the costs of third party childcare
The Economic Commission of the National Council has accepted without opposition the Federal Council's Dispatch 18.050 concerning the tax recognition of third-party childcare costs. This proposal is related to the initiative for skilled workers and is intended to promote the employment of women. The Commission considers that taxing the cost of external care can be an argument for women wishing to enter the labour market, as the cost of care is too high for many young families. In the overall vote, the Commission approved the unchanged proposal by 11 votes to 8 with 5 abstentions. However, a minority of the Commission wishes to limit the deduction to the proven costs of institutional provision of childcare outside the family (rejected by 18 votes to 5), while a second minority demands a deduction not only for third-party but also for self-care of children (rejected by 13 votes to 10). The transaction is expected to be dealt with in the spring session 2019.
Marriage penalty: External expert recommends a broader data basis for the FTA
The statistical basis for direct federal tax, on which the Federal Tax Administration (FTA) can draw, is insufficient. Therefore, especially the estimation of the number of persons affected by the marriage penalty remains subject to uncertainty. This is the conclusion of an external report commissioned by the Federal Department of Finance (FDF), the results of which were presented to the Federal Council at its meeting on 7 November 2018.
Successful involvement of founders and employees
Workshop by Stefan Oesterhelt and Susanne Schreiber on the occasion of the ISIS) seminar on June 7, 2023, entitled "Successfully engaging founders and employees".
Tax aspects of the establishment and development of the start-up
Workshop by Rebecca Schwarzenbach and Patrick Scherrer on the occasion of the ISIS)-Seminar on June 7, 2023, entitled "Tax aspects of founding and building a start-up".
Seminar folder ISIS)-Seminar "Criminal Tax Law" (2023)
Case studies, detailed solution notes and slides: Here you will receive all documents of the individual workshops according to the following content description from the ISIS) seminar "Tax Criminal Law" from 09 May 2023 under the direction of Rolf Benz.
