AA and another v Thurgau Canton Tax Authority : Case 2C_894/2013 ; 2C_895/2013

Resource Information

The work AA and another v Thurgau Canton Tax Authority : Case 2C_894/2013 ; 2C_895/2013 represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

AA and another v Thurgau Canton Tax Authority : Case 2C_894/2013 ; 2C_895/2013

Contributor

• Baker, P

Subject

• capital gains tax
• case law
• entity classification
• foreign limited liability company
• limited liability partnership
• tax treaty

Language

eng

Summary

Judgment by the Swiss Federal Supreme Court (second public law division), judgment date 18 September 2015. The taxpayer lived in the canton of Thurgau. He owned 50 per cent of a US limited liability company (the equivalent of a limited partnership). The other 50 per cent was owned by a US resident. The taxpayer granted the US shareholder an option to buy his shares within 18 months and received two payments for the option. The US partner did not end up exercising the option. The tax authorities classified those payments as taxable income arising out of subsidiary self-employed activities. The taxpayer objected, arguing that the payments constituted tax-exempt private capital gains derived from options in the US company. This decision is one of a number of recent decisions from Switzerland on the characterisation of a foreign legal entity

Citation source

In: International tax law reports. - London. - Vol. 18 (2016), part 6 ; p. 769-797

Language note

• English
• German