Facts
Foundation A., headquartered in the canton of Vaud, was established in 1919 to pursue a public-interest activity. In 2015, it transferred its commercial catering activities to company D.H. SA, of which it is the sole shareholder. The foundation then provided a significant loan to D.H. SA. In 2017, nearly 87% of the foundation's assets were invested in D.H. SA, and 94% of its income came from this company. The foundation requested a tax exemption of its income for public-utility purposes, but this request was rejected by the tax authorities. The Cantonal Court initially granted the exemption, but the FSCA ultimately upheld the appeal of the tax administration.Considerations
The FSCA considered that the foundation did not meet the necessary disinterestedness requirement for tax exemption for public-utility purposes. Although the foundation had transferred its commercial activities, it maintained a close and exclusive economic and legal relationship with its former enterprise, now held by its subsidiary D.H. SA. The vast majority of the foundation's assets are placed in D.H. SA, either in the form of participation or in the form of a loan. This situation results in a reciprocal financial dependence between the foundation and the company, so that the interest in…