Facts
In 2007, A.X. and B.X. undertook to pay a monthly pension of CHF 1,100 to the parents of the spouse, C.X. and D.X., until the death of the last surviving person or at the latest by 31 December 2027. In 2008, A.X. and B.X. made pension payments totaling CHF 13,200.
For the 2008 tax period, A.X. and B.X. applied for a deduction of CHF 5,280 (40% of CHF 13,200) from their taxable income and CHF 194,062 (the surrender value or annuity principal debt as of the end of 2008) from their taxable assets. The Zurich cantonal tax office granted them the deduction from income, but not from assets, as only the annual pension was owed and not the capital. This assessment was upheld by the cantonal appeal instances.
Considerations
The Federal Supreme Court upholds the appeal. It states that the right granted to the annuity creditors here to demand the payment of the entire remaining redemption amount at any time constitutes a right of disposal. The surrender value is therefore not merely a prospective, but an effective and enforceable liability that can be deducted from the taxable assets of the annuity debtors.
The inclusion of the annuity principal of redeemable life annuities during the term with the wealth tax corresponds to the requirements of harmonization law. The cantons are obliged to subject all pecuniary rights and only these to the wealth tax. An exception for redeemable life annuities would therefore be contrary to harmonization.
Even if the…