Federal Supreme Court Partially Confirms VAT Ruling on Tax Succession and Limitations (2014-2017)

• The Federal Supreme Court partially confirmed a previous decision regarding VAT issues from 2014 to 2017.
• B. AG, formerly C. AG, was registered for VAT from May 2006 to June 2020.
• The company operated a cultural center with various services and was later rebranded as A. AG in January 2020.
• A. AG continued similar operations and was registered for VAT in February 2020.
• Both companies were controlled by the D. family.
• The ESTV conducted a tax audit on B. AG for 2014 to 2017, finding undeclared income from cultural events.
• A tax demand of 304,715 Swiss Francs was issued in July 2020.
• B. AG ceased activities by December 2019 and was deregistered from VAT in June 2020.
• The ESTV considered A. AG as the tax successor to B. AG and demanded the same tax amount.
• A. AG’s appeal against this decision was rejected by the Federal Administrative Court in November 2024.
• A. AG appealed to the Federal Supreme Court, arguing it was not the tax successor and claiming statute of limitations for 2014 to 2017.
• The ESTV agreed to the appeal for 2014 but opposed it for other periods.

Source: bger.ch

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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