Federal Supreme Court, 22.12.2025, 9C_271/2025
Facts
Parents sold a property to their son for CHF 750,000, despite an estimated market value of CHF 1,000,000. The transaction was classified as a mixed gift. The resulting real estate capital gain amounted to CHF 189,689. The parents requested a full deferral of the tax on this gain. The cantonal tax authority, upheld by the Administrative Court of the Canton of St. Gallen, granted only a partial deferral, ruling that the portion of the gain corresponding to the sale proceeds exceeding the investment costs was immediately taxable. The parents appealed to the Federal Supreme Court, requesting a full tax deferral.
Legal Analysis
Real estate capital gains tax is governed by the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities (LHID). Art. 12 para. 1 LHID subjects gains realized from the alienation of real estate to taxation. However, Art. 12 para. 3 let. a LHID provides that taxation is deferred in the event of a transfer of ownership through inheritance, advancement of inheritance, or gift. Case law has confirmed that this provision applies to both pure gifts and mixed gifts. The point of contention is whether, in the case of a mixed gift, this tax deferral must be total, or if a partial deferral—as practiced by the Canton of St. Gallen—is compatible with harmonized federal law. The cases for tax deferral provided for in Art. 12 para. 3 LHID are exhaustive and leave no room for cantons to deviate.
Application to the Case
The Federal Supreme Court interpreted Art. 12 para. 3 let. a LHID. Grammatically, the phrasing "taxation is deferred" does not provide for any nuance or limitation, which supports an "all or nothing" principle. Systematically, the Court compared letter a) with letters d) and e) of the same paragraph (regarding reinvestment), which explicitly provide for a partial deferral by using the phrase "to the extent that" ("soweit"). The absence of this specification in letter a) confirms the legislator's intent to establish a full deferral for gifts. Historical interpretation (analysis of the Federal Council's Dispatch) and teleological interpretation (the purpose of the rule, notably to facilitate intra-family transfers and avoid excessive hardship) also point toward a full deferral. The Court concluded that the practice of the Canton of St. Gallen, which grants only a partial tax deferral in the case of a mixed gift, is contrary to harmonized federal law.
Outcome
The Federal Supreme Court upheld the appeal. It set aside the decision of the Administrative Court of the Canton of St. Gallen and ordered the cantonal tax authority to grant the appellants a full tax deferral on the real estate capital gain realized. The case was remanded to the lower court for a new decision regarding the costs and legal fees of the cantonal proceedings.
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