Facts
A.X., born in 1951 and domiciled in Geneva, has been receiving a life annuity from Pillar 3b since 2001, paid by company Y. This annuity is provided under a life annuity insurance contract dated July 2, 2001, for which the policyholder was his mother, B.X., who had paid a single premium of CHF 469,082. The contract did not contain any redemption clause. In his tax return for the 2005 fiscal period, A.X. reported CHF 24,000 as income from the life annuity. However, the Geneva Cantonal Tax Administration taxed the capitalized value of this annuity under wealth tax, in application of the Geneva legislation in force until December 31, 2009.Considerations
The Federal Court ruled that, insofar as it subjects non-redeemable life annuity insurances to wealth tax, the Geneva legislation is contrary to Art. 13 para. 1 of the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities (DTHA). Indeed, according to the unanimous doctrine, rights to periodic benefits such as a life annuity are not part of the taxable wealth within the meaning of Art. 13 para. 1 DTHA when they are not…