Facts
The Federal Court had to deal with a complaint from spouses [X.] , who live in [O.] , Canton of Aargau, and own a condominium unit in Graubünden. The Canton of Graubünden taxed the entire renovation fund including its yield, while the Canton of Aargau only recorded the share attributable to the complainants. The complainants argued that this constituted an inadmissible double taxation.
The condominium owners' association is not a legal entity, but a group of persons without legal personality. The renovation fund is a non-real estate asset that does not belong to the immovable property. The complainants are civilly co-owners of the funds contributed to the renovation fund.
Considerations
The Federal Court examined whether double taxation exists when a taxpayer is subject to taxation by two or more cantons for the same tax object and for the same period. It found that the condominium owners' association and the renovation fund are not subject to the tax jurisdiction of the canton where the property is located, but are taxable at the main tax domicile of the condominium owners.
The court argued that the economic view in double taxation law is generally only permissible if tax evasion is present or the conflict rule itself uses economic concepts. Neither is the case here. The taxation of the renovation fund and its yield is therefore not governed by the criteria applicable to immovable property.
The court found that the condominium owners' association should be treated as a non-commercial…