Private expenses accounted for in the company or professional expenses

The taxpayer is involved in the wine trade. She is acquiring a vehicle from a well-known sports car manufacturer.

During a check, the tax office came across various questionable accounting entries, notably concerning a vehicle from a well-known sports car brand. The tax office viewed this as private expenses being recorded through the company, rather than business expenses. More precisely, it involved the acquisition of a luxury vehicle that was not commercially justified.

The taxpayer disputes the tax authorities' position, stating that the vehicle is occasionally used on tracks with clients and suppliers.

The federal judges note that the taxpayer states in her appeal brief that the purchase of the vehicle cannot be qualified as a hidden distribution of profit because the vehicle has increased in value, and therefore the company has not been impoverished. The federal judges conclude from this that the taxpayer implicitly admits by these comments that the acquisition of the vehicle is not justified by commercial use. They add that such an expense clearly does not correspond to the commercial practices of a company active in the wine trade. Furthermore, the taxpayer's shareholder personally owns several luxury vehicles. The federal judges agree with the assessment of the cantonal judges, who conclude that this acquisition was intended to satisfy the personal tastes of the shareholder-manager.

The ruling is in French. It is a Valais case.

Federal Tribunal, judgment 9C_185/2025, of 21 October 2025