Facts
The Federal Tax Administration requested the Federal Court to overturn the decision of the Federal Tax Appeals Commission of the Canton of Zurich and to set the taxable net income for direct federal tax 2000 at CHF 253,200.--. The rental of a property to relatives at a significantly reduced rent is a form of use by the owner.
[X.] is the owner of the single-family home [A.] in [B.] , which she has been renting to her daughter and son-in-law for self-use for an annual rent of CHF 18,960.-- for years. The imputed rental value in 2000 was CHF 36,900.--. In the 2000 tax return, [X.] declared a taxable income of CHF 238,924.--.
The cantonal tax office of Zurich rejected the appeal, as the owner who makes their apartment available free of charge must have the imputed rental value credited. The Federal Tax Appeals Commission of the Canton of Zurich upheld the complaint and corrected the assessment to a taxable income of CHF 238,900.--.
Considerations
The Federal Court examined whether the difference between the imputed rental value and the lower, actually paid rent can be added. It found that the rental of a property to relatives at a preferential rent does not automatically lead to tax evasion.
The court referred to its previous case law, according to which the difference between the imputed rental value and the actual rent received can only be added if there is tax evasion or if the owner has a co-use right to the property. In the present case, there was no tax evasion, as the rent was 51.4% of the imputed rental value and there were no indications of any further possibility of co-use of the rental property by the complainant.
The Federal Court pointed out that a legal…