Allowances for personal and family circumstances Sample Clauses

Allowances for personal and family circumstances. Sec. 6(1) of the Income Tax Act of 8 June 1997 of the Canton of Zurich provides for an allocation rule accord- ing to which tax-free allowances (steuerfreie Beträge) must be apportioned between the Canton of Zurich and another canton or foreign state in proportion to their taxable income quotas. A similar rule for personal and family circumstances is provided for in Art. 35(3) of the DBG.31 The previous allocation rule was in Sec. 7(1) of the old Income Tax Act of 8 July 1951 of the Canton of Zurich. This was at issue in a case before the Commission of Appeal for Tax Matters I of the Canton of Zurich.32 In this case, Y, an Italian national, became Swiss resident in 1988. He was subject to income tax in Switzerland on approximately 41% of his worldwide income and, in Italy, on around 59%. Y made maintenance payments to his former spouse, who was resident in Italy. The Com- mission held that tax-free allowances should be treated as personal and family allowances. It noted that the allo- cation rule follows the federal case law. Next, the Com- mission argued that maintenance payments should be treated as tax-free allowances. Finally, the Commission held that the allocation rule applied in the cross-border context. Accordingly, the maintenance payments were apportioned between Switzerland and Italy in propor- tion to their taxable income quotas.

Allowances for personal and family circumstances. 4.5.1.1. Virtual residence In this respect, Schumacker163 is relevant. Xxxxxxxxxx, a Belgian national, was employed in Germany, but lived with his wife and their children in Belgium. He was sub- ject to a simplified tax procedure in Germany. Xxxx- xxxxxx was taxed at the general tariff regardless of his family circumstances. Consequently, he did not benefit from the splitting tariff for married employed persons.

Allowances for personal and family circumstances. With regard to allowances for personal and family cir- cumstances, Swiss tax law is based on fractional taxa- tion.213 Those allocation rules that were derived by the Federal Tribunal from the principle of prohibition of inter-cantonal double taxation, in general, comply with the principle of equal treatment of the AFMP. In de Groot, Switzerland as the residence state would, however, have to grant the full allowances for personal and family circumstances. In other words, the ruling of the Com- mission of Appeal for Tax Matters I of the Canton of Zurich of 5 November 1992 would now have a different outcome.214