The case

In the present case, the court had to examine whether the lower court had been right to uphold the lower court’s finding, which was that the tax administration’s audit decisions concerning the years 2010 to 2012 were null and void. One had to look into the assessment rulings for the years 2006 to 2009 and, if the tax administration’s appeal rulings were null and void, whether, as a consequence, the assessment rulings for the years 2010 to 2012 were also to be considered null and void.

Source: Decisions of the Swiss Federal Supreme Court of 19 August 2024 (9C_673/2023) and taxlawblog (German)

The commentary

The court ruled that the tax authority had committed a serious procedural offence, in particular when misusing the discretionary assessment to penalise the taxpayer for not submitting a tax return or otherwise failing to cooperate sufficiently with the authorities in the assessment procedure.

The assessments for the tax years 2006 to 2009 were ruled invalid as there had been serious procedural misconduct by the tax authority. Additionally, the judgments regarding the years 2010 to 2012 are also declared null and void, with all rulings from 2006 to 2012 considered null and void. The appeal by the taxpayer has been upheld. 

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