- Entreprises
Reporting Procedures and Refunds in the National Context
Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)Markus Küpfer, Lic. iur., uses three case studies to illustrate current issues regarding the reporting procedure and the refund of withholding tax. The focus is on corporate group relationships, the repurchase of treasury stock, and refunds to domestic individuals. Get the materials from this workshop, including all of the expert’s detailed solution guidelines.
Support AG is a company subject to unlimited tax liability in Switzerland and is therefore also subject to withholding tax. It is part of the Global Group, which operates worldwide. Among other things, Support AG is responsible for the cash pooling of all companies within the Global Group, including both Swiss and foreign group companies. From 2020 to 2024, Support AG granted the corresponding intra-group loans at an interest rate of 0.25%, without taking into account the individual circumstances of the respective borrowers.
This matter was brought to light during an audit by the Federal Tax Administration (FTA) in February 2025.
Chemie AG is a successful domestic, publicly traded company. In order to return excess liquidity to its shareholders and for the purpose of profit consolidation, the Board of Directors of Chemie AG resolves to implement a share repurchase program. The program runs from April 15 to November 30, 2024. To ensure equal treatment of shareholders, Chemie AG allocates one put option per share (par value CHF 10) to all shareholders. Twenty put options entitle the holder to tender one share of Chemie AG on preferential terms for the purpose of partial liquidation. This proposal by the Board of Directors is fully approved by the General Meeting of Chemie AG on April 14, 2024.
Bank Schlau, headquartered in the canton of Z and subject to unlimited tax liability there, decides to participate in Chemie AG’s buyback program. As of April 15, 2024, however, it does not yet own any shares of Chemie AG. It therefore purchases, on the one hand, 100 shares of Chemie AG anonymously via the stock exchange in October 2024 and, at the same time, 2,000 put options. In addition, in early November, Bank Schlau acquires a total of 200 shares of Chemie AG and 4,000 corresponding put options over-the-counter from the portfolios of clients who hold asset management mandates with the bank.
On November 30, 2024, Bank Schlau exercises a total of 6,000 put options against Chemie AG and tendered the corresponding 300 shares for a capital reduction at a price of CHF 510 per share. After deducting the par values totaling CHF 3,000, a liquidation surplus of CHF 150,000 remains, from which Chemie AG deducts a withholding tax of CHF 52,500. As a result, Bank Schlau effectively receives a total of CHF 100,500 (CHF 97,500 in liquidation surplus plus CHF 3,000 in par value).
On February 27, 2025, Bank Schlau submits Form 25 to the FTA requesting a refund of the withholding tax of CHF 52,500 passed on to it by Chemie AG. As part of its review of this refund application, the FTA requested that Bank Schlau disclose from which clients it had acquired the shares of Chemie AG over-the-counter. However, due to banking secrecy, Bank Schlau does not wish to provide the FTA with specific information regarding the individuals from whose securities accounts it acquired the shares and put options for Chemie AG’s current buyback program. In general terms, however, Bank Schlau stated that the vast majority of these were domestic private individuals.
Mr. Müller, a resident of Canton B with unlimited tax liability, received a gross dividend of CHF 50,000 from his stake in the domestic company Produktions AG during the 2016 tax period. After withholding withholding tax, Produktions AG transferred an amount of CHF 32,500 to Mr. Müller. Produktions AG reported and remitted the withholding tax in the amount of CHF 17,500 to the FTA on June 15, 2016. Mr. Müller initially failed to list this dividend in his securities and asset register.
On September 18, 2020, the Cantonal Tax Office B initiated a back-tax and penalty assessment proceeding against Mr. Müller for underpayment of taxes resulting from the failure to declare the dividend received from Produktions AG in 2016. In decisions dated December 10, 2020, regarding direct federal tax as well as cantonal and municipal taxes, corresponding additional taxes were assessed and a fine was imposed.
Mr. Müller filed an objection to these decisions. In his objection, he states that it is directed neither against the assessed back taxes nor against the fine imposed on him. Rather, Mr. Müller objects to the refusal by the Cantonal Tax Office B to refund the withholding tax in the amount of CHF 17,500 due to the forfeiture of the claim as a result of the passage of time. Mr. Müller is of the opinion that the Cantonal Tax Authority B is wrong to assume that the provision of Art. 32 VStG takes precedence over the provision of Art. 23(2) VStG. In his view, the withholding tax should be refunded in full in this case.
