Legislator Giurisprudenza & Legislazione
II 2023 9 • VG SZ II 2023 9 Generato dall'IA

Taxpayer Challenge to Foreign Tax Credit Calculation Under DTA

Numero d'incarto II 2023 9
Autorità giudiziaria
Giurisdizione Svizzera · Canton Svitto (CH-SZ)
Data della decisione

Sintesi Legislator

Generato dall'IA

The case involves taxpayers challenging a tax assessment related to foreign income, specifically questioning the deduction of foreign withholding taxes when calculating taxable income under domestic law, where the relevant double taxation agreement (DTA) stipulated that such taxes were to be credited against domestic tax liability. The court reasoned that the DTA's credit method requires the taxpayer to first calculate the tax based on domestic law, including the grossed-up foreign income, and then deduct the foreign withholding tax paid from the resulting domestic tax, meaning the domestic tax is not simply reduced by the amount of the foreign tax withheld but rather by the credit allowed under the treaty to avoid double taxation, confirming the assessment method used by the tax authority.

Regesto Legislator

Generato dall'IA

Taxpayer Challenge to Foreign Tax Credit Calculation Under DTA: The court reasoned that the DTA's credit method requires the taxpayer to first calculate the tax based on domestic law, including the grossed-up foreign income, and then deduct the foreign withholding tax paid from the resulting domestic tax, meaning the domestic tax is not simply reduced by the amount of the foreign tax withheld but rather by the credit allowed under the treaty to avoid double taxation, confirming the assessment method used by the tax authority.

Parole chiave

Generato dall'IA
convenzione contro la doppia imposizione deduzione dal reddito autorità fiscale tassazioni fiscali diritto estero sistema di calcolo
Generato dall'IA

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\n\n| | | |\n II 2023 9 |\n |\n \n\n

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\n\n| | | |\n |\n Entscheid vom 20. Juni 2023 |\n \n\n

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\n\n| | | |\n Besetzung |\n lic.iur. Achilles Humbel, Präsident |\n \n|\n |\n Dr.iur. Frank Lampert, Richter lic.iur. Karl Gasser, Richter |\n \n|\n |\n Dr.iur. Thomas Twerenbold, Gerichtsschreiber |\n \n\n

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\n\n| | | |\n Parteien |\n A.A. und B.A., \n Beschwerdeführer, |\n \n|\n |\n gegen |\n

\n|\n |\n Kantonale Steuerkommission/Kantonale Verwaltung für die direkte Bundessteuer, Bahnhofstrasse 15, Postfach 1232, 6431 Schwyz, \n Vorinstanzen, |\n

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