Facts

Taxpayer [A.] was domiciled in the Canton of Bern and was a partner in a law firm during the tax years 2004 to 2007. In 2009, the Tax Office of the Canton of Zurich conducted an audit of the law firm. As a result, the Tax Administration of the Canton of Bern initiated a subsequent taxation and tax evasion procedure against the taxpayer for the tax years 2004 to 2007. The Tax Administration attributed expenses that were not commercially justified to the taxpayer's income and levied corresponding subsequent taxes and tax penalties.

The taxpayer contested the subsequent taxation and tax penalty decisions with the Tax Appeal Commission and later with the Administrative Court of the Canton of Bern. The Administrative Court annulled the decision for the tax year 2004, but dismissed the appeal in all other respects. The taxpayer appealed this judgment with a public law appeal to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the taxpayer's appeal. It concluded that the lower instance had rightly offset the expenses that were not commercially justified:

  • For travel costs of CHF 7,205.-- in 2006, there was insufficient evidence that these were related to a recognized business trip.
  • Expenses of CHF 10,360.40 for a trip by the taxpayer with his then partner to Costa Rica in 2005 were not commercially justified.
  • Accommodation and consumption costs of CHF 2,819.05 for a stay of the…