Administrative Assistance in Tax Procedures between Switzerland and the Netherlands

Facts

The [A. GmbH] , a Swiss company, was designated as the "involved (legal) person in Switzerland" by the Dutch tax authorities in the context of an examination of the tax obligations of the Dutch taxpayer [B.] . The Dutch authorities requested administrative assistance from the Federal Tax Administration (FTA) and demanded various information and documents from the [A. GmbH] , particularly in connection with a loan between the [A. GmbH] and [B.] . The [A. GmbH] filed a complaint against the final decision of the FTA, in which it agreed to provide the administrative assistance.

Considerations

The Federal Supreme Court dealt with the following legal issues:

1. Foreseeable Relevance of the Requested Information The Federal Supreme Court examined whether the information requested by the Dutch authorities was likely to be relevant for the asserted tax purpose. It concluded that the information, including that relating to third parties such as shareholders and directors, is considered likely to be relevant, as a connection between the information and the investigation of the tax authorities appears plausible.

2. Duty of Cooperation of the [A. GmbH] : The Federal Supreme Court stated that the [A. GmbH] is obliged to cooperate comprehensively in the administrative assistance procedure, insofar as the information may also be relevant for its own assessment. The Federal Supreme Court did not consider a limitation of the duty of cooperation to information that exclusively concerns third parties to be justified.

3. Protection of Trade…