- The FAC ruled that the taxpayer’s forwarding of portfolio management commissions to clients does not qualify as a reduction in remuneration under Art. 41 of the VAT Act. The taxpayer’s reliance on FTA’s practice regarding retrocessions was deemed inapplicable. The FAC found that under civil law, there is an obligation to pass on these commissions, and if clients do not waive forwarding, it does not reduce the asset manager’s remuneration. The taxpayer’s appeal was dismissed, and the FAC did not address whether this interpretation affects the classification of such commissions as remuneration from banks or fund management companies.
Source: bvger.weblaw.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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