Tag: Shareholder

Switzerland vs Hotel X. SA, Nov. 2013, Courts of Switzerland, Case No. 2C_291 / 2013 / 2C_292 / 2013

Switzerland vs Hotel X. SA, Nov. 2013, Courts of Switzerland, Case No. 2C_291 / 2013 / 2C_292 / 2013

A loan was granted from a swiss company to its shareholder. The interest rate was fixed at 2,5%. This was found to be a hidden distribution of profit to the shareholder, cf Art. 58 al. 1 letter. b LIFD. Click here for English translation Hotel X vs switzerland ... Read more
Canada vs Miron and Frères Ltd, June 1955, Supreme Court, Case No. S.C.R. 679

Canada vs Miron and Frères Ltd, June 1955, Supreme Court, Case No. S.C.R. 679

Miron and Frères Ltd acquired a farm from one of its shareholders, Gérard Miron, at a price ($600.000) far exceeding the original cost ($90.000) one year prior to the transaction. Miron and Frères Ltd claimed a capital cost allowance based on the price paid. Considering that the purchase was not a transaction “at arm’s length” but was one between a corporation and a controlling shareholder, the tax authorities rejected the claim and based the allowance on the original cost to the shareholder. Judgement of the Supreme Court The appeal filed by Miron and Frères Ltd was dismissed with costs. “Notwithstanding that an assessment is, by virtue of s. 42(6) deemed to be valid and binding, subject to appeal, the appellant saw fit to adduce no evidence with respect to the shares or the subject matter of control apart from the share-holdings as above set out. It is now argued on behalf of the appellant that it was for the respondent ... Read more