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Tax Treaty Case Law around the Globe 2018

Schriftenreihe IStR Band 112

1. Aufl. 2019

ISBN: 978-3-7073-4022-8

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Tax Treaty Case Law around the Globe 2018 (1. Auflage)

S. 169Chapter 17 Switzerland: Swiss Federal Supreme Court: Distinction between Income from Employment and Other Income

Michael Beusch and Lysandre Papadopoulos

17.1. Introduction

Switzerland is a small economy situated in the heart of Western Europe. It is thus not surprising that the tax authorities and courts encounter cross-border situations concerning employment income on a regular basis. This is particularly so in the Geneva area, the decisions from which are, consequently, handed down in French, and typically refer to the France-Switzerland Income and Capital Tax Treaty (1966) (hereinafter France-Switzerland tax treaty). Since this treaty follows the OECD Model, the findings from these cases may be of significance to all Swiss treaties and – with respect to convergence – to any treaty that follows the OECD Model.

17.2. Facts of the case

X was born in 1974 and had his domicile in Geneva, Switzerland, in 2012. He worked as the CEO of a German company’s French subsidiary.

On 5 March 2012, X concluded an agreement with his employer. It was, in particular, agreed that the employment contract would end on , and that X would be irrevocably released from the obligation to work a...

Tax Treaty Case Law around the Globe 2018

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