Crowdfunding

Case 1: Purchase of real estate

Facts

A would like to invest his money in real estate. He has seen an offer on the Internet where he could invest directly in real estate. The minimum capital investment is CHF 25,000, with which he acquires a co-ownership share in an apartment building. In total, the apartment building is held by 30 co-owners. There is a partnership agreement and a usage and administration regulation entered in the land register. The administrator appointed therein is B AG, which also organised the acquisition of the property by the co-owners. When the property was acquired, the B AG charged all co-owners a commission fee. B AG receives a management fee for the ongoing management of the apartment building. In the event of a total sale of the property, which is reviewed for the first time after five years, B AG in turn receives a transaction fee from all co-owners. If individual co-ownership shares are sold, B AG charges a processing fee to the seller and the buyer.

What are the tax implications for A and B AG?

After A has had good experience with this investment, he is now involved in other such projects. After about five years he is involved in 20 properties in various cantons.

What does this mean for A in terms of tax?

Case 2: Reconstruction wooden bridge

Facts

The wooden bridge of community C had to be demolished for safety reasons. For the financing of the reconstruction the municipality C is looking for sponsors. It plans to do this through a crowdfunding platform. Each donor should be listed on a plaque attached to the bridge. The crowdfunding platform will retain 10% of the funds received as a brokerage fee.

The financial director of Municipality C would like to know the tax implications before approving the operation.

Case 3: Buses

Facts

D, E and F took part in an unauthorized demonstration against the Miss Switzerland contest and were fined for it. The Juso collected money to pay these fines as part of a crowdfunding campaign.

How is this to be assessed from a tax perspective?

Case 4: Books

Facts

M, an up-and-coming young advertising expert living in Switzerland, plans to launch four different books on the subject of advertising, each with a circulation of 5000. He wants to realize this project by means of a limited liability company. To finance the total costs of CHF 400,000, he is choosing the form of crowdfunding. In return, each investor will receive four different books after the project is completed.

If M does not raise the total amount of CHF 400,000 by means of crowdfunding, he does not want to realize the project. All payments already received are to be refunded by the GmbH if the total amount of CHF 400,000 is not raised in due time.

How are the facts of the case to be assessed under civil law and tax law and what are the accounting procedures?

Case 5: Computer game

Facts

P AG develops computer games. It needs CHF 900,000 to develop a new game, but since the shareholders do not want a new partner, they try to borrow the money. Through a crowdfunding platform, P AG manages to raise the necessary funds. The interest rate is 5% per year. The processing of the loans from the 31 lenders (minimum amount of CHF 20,000) is handled directly by P AG. P AG owes the crowdfunding platform an initial fee of 0.5% and a further fee of 0.5% on the total loan amount for each year of maturity.

How is the situation to be assessed for tax purposes?