In Cantons with real estate gains tax, in general the ordinances on income tax and real estate gains tax are not concisely or consistently harmonised. We differentiate between:
- Demarcation problems and
- Real conflicts
Demarcation problems mostly occur when so-called non-property items such as fixtures and fittings, goodwill, chattels etc. are purchased in conjunction with the real estate at an unitemised lump sum price. It is recommended to define the values of the non-property items which are part of the overall purchase in the purchase contract.
Real conflicts of a tax nature relating to profit and real estate gains taxation arise in particular in the case of transfer of ownership due to the transfer of shares to a real estate company: under certain circumstances the sale of shares (albeit moveable assets) is handled in the same way as the direct transfer of the property from a tax point of view. As far as inter-cantonal relationships are concerned, the Swiss Federal Supreme Court when deliberating on this qualification conflict has decided in favour of real estate gains tax or in favour of the Canton in which the property is located.