Bär & Karrer Successfully Represents Swiss Investment Foundation in Landmark Federal Supreme Court Tax Case

In a landmark decision on 10 June 2024 (9C_393/2023), the Federal Supreme Court upheld an appeal by a Swiss investment foundation, challenging the current Geneva practice regarding the property gains tax imposed on certain tax-exempt entities.

Contrary to the wording of federal law, the Canton of Geneva levies ordinary corporate income tax on gains derived by such entities from the sale of real estate located in the Canton of Geneva.

The applicable ordinary corporate income tax rate ranges between 8-12%, depending on the type of entity concerned, while the special property gains tax rate can be as low as 0% for property that has been owned for 25 years or more. The Federal Supreme Court agreed with the Swiss investment foundation and found the practice of the Geneva tax authorities to be in contrast with federal legislation.

Bär & Karrer represented the Swiss investment foundation in this case. The team included Christoph Suter, Matthias Bizzarro, and Alice Johnson.