\ud83d\udc49 The taxpayer company was incorporated in Zurich. After nine years in business, its registered office was transferred to Zug. The company has a branch abroad in the form of a laboratory. The chairman of the board of directors lives in Zurich. He also holds a 95% share in the taxpayer\u2019s share capital and is its sole director. The other directors, who have since resigned, also live in Zurich.
6 years after the relocation of its headquarters to Zug, the Zurich tax authorities are taking an interest in the taxpayer's substance at its Zug headquarters:
1. bail
2\ufe0f\u20e3 Financial statements for the last 5 years
Description of the CEO's activity
4\ufe0f\u20e3 details of the infrastructure at the company's headquarters on its premises in Zug
for usual administrative tasks
\u25b6\ufe0f for welcoming customers
for customer acquisition
5 employment contracts for employees based in Zug
The taxpayer presents a lease agreement for CHF 1,200 per year (sic!) for a shared office and a service contract. The taxpayer has no staff at their registered office.
Federal judges reiterate that one-man show companies, in principle, have their effective management at the home of their operator, provided that the effective administration is concentrated there (see 5.1). It is therefore not automatic.
\ud83d\udc49 The manager spends 90% of his time abroad and therefore runs the company\u2019s operations from wherever he happens to be. The company\u2019s overseas branch represents the core of its business. The judges accepted \u2013 although detailed evidence (flight tickets, hotel bills) was not produced \u2013 48, 58, 63, 26 and 44 trips abroad.
The federal judges concluded that the host's frequent absences from his home make effective administration at his residence materially impossible. Therefore, the formal seat in Zug must be upheld.
The judgment is in German. It is a Zurich case.<\/p>\n\n\n\n
TF, judgment 9C_547\/2023, of 8 April 2025<\/p>","protected":false},"excerpt":{"rendered":"
\ud83d\udc49 La soci\u00e9t\u00e9 contribuable est fond\u00e9e \u00e0 Zurich. Apr\u00e8s 9 ans d’activit\u00e9, son si\u00e8ge est transf\u00e9r\u00e9 \u00e0 Zoug. La soci\u00e9t\u00e9 dispose d’une succursale \u00e0 l’\u00e9tranger sous forme d’un laboratoire. Le pr\u00e9sident du CA vit \u00e0 Zurich. Il est \u00e9galement actionnaire \u00e0 95% du capital-action de la contribuable et son animateur unique. Les autres administrateurs, qui […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-213","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n