Facts
The Swiss Federal Tax Administration (ESTV) received several mutual assistance requests from the French tax authorities (DGFP) to review the transfer pricing policy of the X. Group. The DGFP is monitoring the financial situation of the French companies in the group and requires information about the Swiss group companies, in particular their balance sheets, permanent establishments, income statements, and taxation in Switzerland.
The ESTV largely complied with the requests, whereupon the affected Swiss companies filed appeals. The Federal Administrative Court partially upheld the appeals and restricted the exchange of information. Both the ESTV and the companies appealed these decisions to the Federal Supreme Court.
Considerations
The Federal Supreme Court concluded that the information requested by the DGFP should generally be considered as foreseeably relevant for the review of the transfer pricing within the corporate group. This includes in particular the balance sheets, information on the permanent establishments and their profit allocation, as well as the income statements of the companies.
The information on the taxation of the companies in Switzerland,…