Facts
The taxpayer [A.] held 56 percent of the shares of [X. AG] , of which he was the managing director until February 2000. The tax administration of the canton of Basel-Landschaft accused the AG of having transferred parts of the insurance commissions to which it was entitled under a contract with [Y. AG] to a Liechtenstein institution in the years 1997/1998, without recording and taxing these earnings. As a result, the tax administration initiated subsequent tax and tax evasion proceedings against the taxpayer and the AG.
The Cantonal Court of Basel-Landschaft upheld the taxpayer's appeal and revoked the subsequent taxes and penalties imposed. Although it saw a direct business connection between the AG and the Liechtenstein institution, it could not prove that the taxpayer had received any monetary benefits from this.
Considerations
The Federal Supreme Court overturns the decision of the Cantonal Court and confirms the decision of the Tax Court, according to which the taxpayer has realized monetary benefits in the amount of CHF 1.28 million (1997) and CHF 686,607 (1998), which are subject to subsequent taxation.
The Federal Supreme Court states that the AG has unjustifiably waived commission income in favor of the Liechtenstein institution, which fulfills the facts of the case of monetary benefits. Since the taxpayer, as the majority shareholder and managing director of the AG, must have known about these events,…