- The blog post analyzes a Federal Administrative Court ruling on classifying forwarded subsidies in the cultural sector.
- The Federal Supreme Court confirmed the lower court’s assessment but with different reasoning.
- A-GmbH, involved in film production, receives funding from a private-law foundation funded by Zurich’s city and canton.
- The FTA classified the funding as subsidies, demanding additional tax payments, which the foundation contested.
- The Federal Administrative Court ruled that the foundation’s funding is earmarked public subsidies, not voluntary donations.
- The foundation acts as an instrument of Zurich’s city and canton for public film promotion.
- The Federal Supreme Court noted that funds must be used for a public interest purpose, not freely disposed of.
- The funds’ classification as subsidies remains despite being passed through intermediaries.
- The foundation’s role is to distribute funds for a specific purpose in the film industry.
Source: primetax.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.
