The dispute on art imports – Urs Schwarzenbach, loses in Federal court The highest instance of the complaints of the art collector, and decides in favour of the Federal customs administration. 25 Kommentare25Kunstsammler black brook, here, in front of the district court of Bülach to a process in 2017.Keystone

The Zurich-based art collector and hotel owner Urs Schwarzenbach suffers in dispute over overdue taxes for imported works of art a bitter defeat. The Federal court has issued in the dispute between him and the Swiss Federal customs administration (FCA), two judgments.

In August of 2015, the district Directorate of Customs Schaffhausen, Urs schwarzenbach requested the retroactive payment of value-added taxes in the amount of 11.7 million Swiss francs, plus 2.6 million in interest. They accused him to have 86 works of art in the so-called relocation process in Switzerland. This allowed him to import taxes, postpone, or avoid.

black Bach cooperated with a gallery, which had the necessary authorisation for the transfer procedure. The gallery could have, according to the district Directorate of Customs, but never on the plants. In reality, a part of which was issued in black-and Bach’s properties and in the Hotel Dolder in Zurich, which he also owns. There are no artworks was re-exported.

Not in the gallery, but in the Hotel Dolder: black Bach has issued a part of the works.Keystone/Gaetan Bally

black Creek fought back against a decision of the Directorate General of customs and the Federal administrative court dismissed the appeal in January 2019 was good in parts. The tax claim at the address of the entrepreneur was reduced to 10.8 million Swiss francs and 2.4 million Swiss franc interest rates. This decision Bach more attracted both black as well as the ECCS before the Federal court.

black-and Bach’s complaint dismissed

On Friday, the Federal court published its decisions to the black Creek and the FCA complaints. Black Bach’s complaint, with which he has to set aside the judgment of the Federal administrative court requested, was rejected. In addition, the Federal court upheld the complaint to the FCA partially well, and referred the matter back for reassessment to the lower court. Seven of these works of art are affected.

the Federal court confirmed The judgment of the administrative Tribunal of the main points: The application of the relocation procedure by the gallery was in breach of Federal law, and allowed the evasion of import taxes. The one with the black-and-Bach-controlled company concluded contracts gave the gallery no real decision-making power.

the matter, has not been specified in the contracts, that the black Bach is behind the company, to whom the paintings belong, and he is, therefore, the actual importer.

black Bach is not only to be targeted by the FCA, but also has disputes with the tax authorities. He is said to have traded in Switzerland with art, without declaring the income from these activities accordingly.

Decide 2C_219/2019 and 2C_217/2019


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