Case studies, slides and detailed solution notes (+100 pages of documents) from the workshop held by Alexandra Hirt on October 28, 2025 on the occasion of the ISIS seminar "Unentgeltliche Vermögensübertragungen im Steuerrecht".
Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)Max and Erika Muster operate a restaurant in Herisau, in the canton of Appenzell Ausserrhoden, as a partnership. The couple and Max’s mother all live in Herisau.
To finance the business operations, Max’s mother granted the couple a loan of CHF 100,000 in 2018. In the partnership’s accounting records, this loan was reported as a business debt.
At the end of 2024, the mother/mother-in-law waives the repayment.
Mr. and Mrs. Muster purchased the Hotel Regina in Wengen from See-Immobilien AG, a company domiciled in Zurich, for CHF 4 million under a purchase agreement dated December 29, 2006. At the time of the negotiations, the situation in the hotel sector was tense, and the property was in dire need of renovation. No other prospective buyers were found.
Since the official value of the property was CHF 4.6 million, the Bernese tax administration initially required a gift tax declaration for the difference of CHF 0.6 million. A market value appraisal later obtained by the Bernese tax administration even estimated the property’s market value at CHF 6.2 million.
In November 2019, Max Muster transfers a property in the Canton of Baselland valued at CHF 1.55 million to his son Markus and his long-term (more than five years) cohabiting partner Martina, each receiving a 50% co-ownership share, via a purchase and gift agreement. CHF 550,000 of the transfer value is paid, with Markus and Martina each contributing CHF 275,000. CHF 1 million is forgiven to the son as an advance on his inheritance.
There is no written agreement between the cohabiting partners from 2019 regarding this transaction. Nor do the cohabiting partners’ tax returns mention either a gift or a loan. It is not until October 2021 that the cohabiting partners set out in writing that, in the event of the dissolution of the cohabitation, Martina is to pay CHF 500,000 to Markus.
How should the transfer be treated for gift tax purposes?
Max Muster is a wealthy widower residing in Zurich. In view of the vote on the federal popular initiative “For a Social Climate Policy – Financed in a Tax-Fair Manner (Initiative for a Future)” (“JUSO Initiative”) on November 30, 2025, he wishes to transfer two properties to his two children as a partial anticipation of future succession—subject to a life-long usufruct:
The children have not yet decided how they intend to divide the two properties among themselves after their father’s death. The family has therefore agreed that the properties should be transferred to both children.
Erika Muster owns a single-family home in the city of Lucerne. She has been renting it to her brother for years for an annual rent of CHF 20,000 (alternative: CHF 25,000). The imputed rental value in 2023 is CHF 45,000.
Erika Muster herself lives in a rented apartment, also in the city of Lucerne.
In her 2023 tax return, Erika Muster reported a taxable income of CHF 100,000. This included the aforementioned rent, minus a 20% maintenance allowance.
On May 23, 2025, Erika Muster transfers her apartment in the Haus zur Rose in Sissach (Canton of Basel-Landschaft) to her brother Max Muster free of charge. On the same day, Max Muster also transfers the apartment to his son Martin free of charge. Both contracts were executed before the same notary. In both contracts, the effective date of the transfer is retroactive to May 2, 2012. The remaining contractual provisions are also identical in both contracts.
Max Muster lives with his common-law partner Erika in the canton of Aargau. He has three adult children from his now-divorced marriage. All three children live in Lucerne. He is seriously ill and will soon die.
Max Muster wants to provide for Erika during his lifetime. He grants her a life annuity that is to continue until her death.
What are the tax consequences?
Max Muster passed away on December 31, 2024. After his death, the following insurance benefits were paid out to his three children, each receiving one-third:
(lump-sum benefit: CHF 300,000; CHF 265,000 single premium; CHF 35,000 surplus benefits; policy start date: November 10, 2021; pension start date: January 1, 2028)
Who has taxing authority, and how are the aforementioned benefits taxed?
