Taxation of Real Estate Gains with Different Contracting Parties

Facts

In March 2002, X AG sold three properties in M. (SZ) to three different buyers. Y AG acted as the developer and general contractor for the respective buildings, which Z AG brokered to the property acquirers. The tax administration of the Canton of Schwyz demanded real estate gains taxes from X AG by adding the land price and the construction costs. X AG unsuccessfully filed an objection, after which it filed an administrative court appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court decided that the consolidation practice applied by the Administrative Court, which was developed for the real estate transfer tax, cannot be transferred to the real estate gains tax if the seller and the contractor are not identical. For the real estate gains tax, each taxpayer must be taxed based on their own realized gain. Since in the present case no…