It's all about the art of structuring one's assets intelligently.

The taxpayer is a company active in the real estate sector. It acquires shares in property PCCs for subsequent resale, realising substantial gains. The taxpayer considers that the gains are exempt from corporation tax.

The tax authorities reclassify capital gains on PCC shares into taxable income, a decision confirmed by the cantonal court.

Federal judges reiterate the principle of determinacy of accounts. The capital gain has been duly accounted for. There is no corrective rule under tax law, so the capital gain is subject to profit tax. The taxpayer argues that there is a guiding principle for the taxation of real estate PCCs to the effect that the PCC is taxed and the shareholder is exempt on the real estate portion, without convincing the federal judges:
1️⃣ this development relates solely to income, not capital gains on the shares themselves
2️⃣ the appellant is vainly attempting to 'establish a relationship of equivalence between
»the tax treatment of the capital gain realised on the disposal of a share in a [real estate SICAV] and the tax treatment of the capital gain realised on the disposal of a property held by the [real estate SICAV]" (para. 4.5.1.)
3️⃣ admittedly there is in this case double or treble taxation, but it «is inherent in the tax system intended by the legislator» (consideration 4.5.2.)

The ruling is in French. This is a Vaudois case.

Federal Tribunal, judgment 9C_12/2025, of 9 July 2025