No gift, despite the family connection

In 2017, a father purchased 20 shares from his son for CHF 20’000, even though these shares were actually worth around CHF 6.8 million. The tax authorities classified the difference as a partial gift, as the agreed price was significantly below the actual value.

The father contested this, citing an agreement from 2008 stipulating that shareholders must sell their shares at par value. The Federal Supreme Court found that this rule applied equally to all shareholders and was not intended specifically for the sons. The lower court had misinterpreted this. Given this specific rule, it could not automatically be assumed that the son had intended to gift his father a financial advantage. Whilst a gift is often presumed in the case of related parties, this presumption did not apply in the present case. The tax authority should therefore have proved that there was indeed an intention to make a gift. Consequently, the appeal was upheld and the father was vindicated. (Source: BGE 9C_118/2025 of 22 April 2026)