Obligation of the Taxpayer to Provide Documents and Information

Facts

X. is a shareholder and member of the Board of Directors as well as an employee of Y. AG. In the context of the transition from retrospective to current assessment as of 1 January 2003, the tax assessment authority repeatedly requested X., under threat of a fine, to provide the detailed bank statements for the calendar years 2001, 2002 and 2003 of two accounts declared by him at the Cantonal Bank of Valais. After X. repeatedly refused to submit the requested documents, the tax authority imposed a fine of CHF 500.- for refusal to provide information, as threatened, on 14 December 2005. The tax administration of the Canton of Valais has filed an administrative court appeal against this decision to the Federal Supreme Court.

Considerations

The Federal Supreme Court notes that the tax assessment authority can demand from the taxpayer all information and documents that may be relevant for his assessment, under both the applicable federal tax law and the Tax Harmonization Act, provided that they do not exclusively concern his business partner(s) and do not involve unreasonable effort. Insofar as the cantonal provision restricts the obligation to provide documents and information to documents and information that are "necessary for taxation", it contradicts the requirements of the Tax Harmonization Act, and Art. 42 para. 2 DTHA applies directly in this respect.

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