Facts
The appellants, A. and B.X.-[Y.] , were assessed for direct federal tax 2008 and cantonal and municipal taxes 2008 by the Cantonal Tax Administration of Zurich. The assessment was made with a taxable income of CHF ... and a taxable wealth of CHF .... The appellants requested that the return of shares worth CHF ... be considered as a deductible item, which was rejected by the Cantonal Tax Administration of Zurich. The appeals and legal remedies lodged against this decision were unsuccessful.
The appellants filed a complaint with the Federal Supreme Court and requested that the judgments of the Administrative Court of the Canton of Zurich be annulled and that the taxable income be set at CHF ... for direct federal tax 2008 and at CHF ... for cantonal and municipal taxes 2008.
Considerations
The Federal Supreme Court examined the complaints and came to the conclusion that the lower court had rightly classified the severance payment as taxable income, but had not considered the return of the shares as a deductible item. The court found that the return of the shares had not been made voluntarily, but under the pressure of public opinion and political developments.
The court found that the return of the shares can have a deductible effect if it occurs under certain circumstances. However, it also found that the lower court had not sufficiently clarified the facts and that the appellants had not sufficiently substantiated their claims.
The court decided to refer the matter back to the tax administration to further clarify the facts and re-evaluate the tax consequences of the return of the shares. It annulled the…