A gift is not presumed... and yet

The taxpayer receives a loan from her father, interest-free, with no repayment deadline, and a repayment plan corresponding to an annual debt forgiveness of the maximum amount allowed under the gift tax exemption. This loan agreement is identical to those between the father and his other children. Finally, the loan agreement stipulates that the amounts concerned are not to be included in the estate.

The tax authorities are treating the total loan amount as a direct donation to a descendant.

The cantonal judges uphold the simulation, meaning that the parties did not intend to conclude a loan agreement, but a gift agreement.

Federal judges uphold the interpretation of the loan agreement by cantonal judges.

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

Court of Justice, judgment 9C_243/2024 of 11 September 2025