Deduction of disability-related costs for federal direct taxes and cantonal taxes

Facts

[A.] , born on 19 April 1931, required intensive care due to health reasons during the tax periods 2009 and 2010. She received care at home and claimed disability-related costs of CHF 323,028 for 2009 and CHF 289,939 for 2010. However, the tax administration of the Canton of Basel-Stadt only allowed a deduction of CHF 100,000 per tax period. [A.] 's appeals against this decision were dismissed. After her death in November 2015, the [X.] Foundation as sole heir continued the appeal.

Considerations

The Federal Supreme Court held that according to Art. 33 para. 1 let. h DFTA and Art. 9 para. 2 let. h DTHA, only those costs are deductible as disability-related that are causally related to the disability and do not constitute living or luxury expenses. The lower court correctly applied these…