Facts
Spouses [A.A.] and [B.A.] née [C.] are domiciled for tax purposes in the United Kingdom. In Switzerland, they are subject to limited tax liability, particularly in the Canton of Zurich, where they own real estate. The husband has been classified by the Canton of Zurich as a professional real estate dealer since 2008. In the context of a customs investigation, there was a suspicion of customs and value-added tax offences in connection with the importation of art objects. The Cantonal Tax Office Zurich (KStA/ZH) subsequently initiated supplementary tax and penal tax proceedings for the tax periods 2005-2009 and 2010-2013. It imposed high supplementary taxes and wealth taxes, as it assumed that the taxpayer maintained a permanent establishment in the canton and carried out an independent economic activity in the field of art and antique trade. The taxpayers' legal remedies against the decisions were unsuccessful within the canton. They filed appeals against the decisions of the Administrative Court with the Federal Supreme Court.Considerations
The Federal Supreme Court first notes that the appellant 2 (wife) is only subject to limited tax liability in Switzerland and should not have been included in the husband's art trade. To this extent, the contested decisions are set aside and the matter is remanded to the KStA/ZH for re-assessment. Otherwise, the appeal is unfounded. The Federal Supreme Court confirms that the requirements for a supplementary tax procedure pursuant to Art. 151 DFTA were met and that the KStA/ZH was entitled to make the assessment at its…