Facts
The spouses [A.A.] and [B.A.] (the taxpayers) filed an appeal with the Tax Appeals Court of the Canton of Zurich on May 9, 2018, regarding direct federal tax, tax period 2011. The tax representative, [D.] , was commissioned to represent the taxpayers. The Tax Appeals Court dismissed the appeal on March 26, 2019, and sent the decision on April 3, 2019, by registered mail to the tax representative. The tax representative had issued a forwarding order and was absent on vacation, which is why the Post CH AG returned the registered letter to the Tax Appeals Court. The taxpayers only learned of the decision on June 3, 2019, and filed an appeal with the Administrative Court of the Canton of Zurich on July 1, 2019.
The Administrative Court of the Canton of Zurich did not consider the appeal because the appeal period had begun to run on April 16, 2019, and had expired unused on May 15, 2019. The taxpayers filed an appeal with the Federal Court and requested the annulment of the decision of the Administrative Court and the return of the case for substantive consideration.
Considerations
The Federal Court examines federal law ex officio and with unrestricted cognition. The fiction of service applies if an administrative authority sends a document by registered mail and the postal item is not received or collected. The service is deemed to have been made on the seventh day after the unsuccessful service attempt.
The taxpayers had issued a forwarding order and were absent on vacation, which is why the Post CH AG returned the registered letter to the Tax Appeals Court. The Federal Court considers it reasonable that the taxpayers had to expect service, as they were…