Dismissal of the appeal against the taxation of contributions from a family foundation

Facts

In the year 2000, spouses [A.X.] and [B.X.] received a contribution of 31,000 CHF from the [X.X.] family foundation, which they declared as other income in their tax return. However, the Cantonal Tax Office Zurich and the Tax Appeal Commission I of the Canton of Zurich rejected a tax exemption for this contribution. Thereupon, the [X.] spouses filed an administrative court appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the appeal. It stated that income from foundations generally falls under the general clause of Art. 16 para. 1 of the Federal Act on Direct Federal Taxation (DFTA) and is therefore subject to taxation. An exception to the tax liability under Art. 24 DFTA (donations) does not apply here, as the…