Taxation of Income from Self-Employment in the Inter-Cantonal Relationship

Facts

X. is domiciled in L./OW and is the sole shareholder, sole member of the Board of Directors, and employee of A. AG with its registered office in M./BL. Previously, X. had registered the B., a sole proprietorship, in the Commercial Register. On June 11, 2007, X. filed tax returns for the 2006 tax period in the cantons of Obwalden and Basel-Landschaft, in which he declared income from self-employment for the first time.

The tax administration of the canton of Obwalden, in its assessment decision of July 31, 2009, took into account all tax factors for taxation, with the exception of those related to the out-of-canton property. The tax administration of the canton of Basel-Landschaft, in its assessment decision of January 21, 2010, claimed not only the factors related to the property, but also the income from self-employment.

X. lodges a complaint with the Federal Supreme Court against the cantons of Basel-Landschaft and Obwalden, alleging a violation of the prohibition of inter-cantonal double taxation.

Considerations

The Federal Supreme Court dismisses the complaint against the canton of Basel-Landschaft, as it has asserted its right to taxation in a timely and proper manner. The canton of Basel-Landschaft sent X. the tax return at the beginning of 2007 and subsequently conducted a book audit, thereby initiating the assessment procedure within the time limit.

However, the Federal…