Moving abroad transforms a shareholder current account into income

The taxpayer receives a loan from their company in t-3. In t0, they move abroad. In t+2, they sell their shares to a foreign company that they own. The sale price includes the repayment of the associated current account (on the company's balance sheet).

The tax authority adds the shareholder's current account balance to taxable income t0.

Cantonal judges analyse the taxpayer's financial situation at t0, not only their net worth but also their cash flow to determine if they have the means to repay the loan.

Federal judges recall the content of Art. 718b CO: When you hold a dual role as (i) director with sole signature authority (for the company) and (ii) counterparty to a contractor (in your own capacity), the written form is required. (cons. 4.4.1.) «If the company is represented by the person with whom it is entering into a contract, that contract must be concluded in writing. This requirement does not apply to ordinary transactions for which the company's performance does not exceed CHF 1000.» (Art. 718b CO)

The tax authorities explain that they already had doubts in minus three years about the reality of the loan (which at the time amounted to CHF 300,000) and whether it was simulated.

Federal judges rap tax authorities.

If the loan was simulated at t-3, it is not the sale of the stake at t+2 that triggers a simulation at t0.

The income corresponds to the increase in the simulated loan at t0.

The ruling is in German. It is a case from Solothurn.

TF, judgment 9C_2016/2025, of 10 April 2026