Decision on Subsequent Tax for the Federal Direct Tax 2002

Facts

The appellant [X.] invested a total of 60,000 Swiss francs with [Y. AG] , an investment advisory firm that later went bankrupt, in December 2001 and June 2002. From February to October 2002, [X.] received payments totaling 22,704 Swiss francs from [Y. AG] . The Cantonal Tax Office of Nidwalden then issued a subsequent tax assessment for the federal direct tax 2002 in the amount of 1,278.05 Swiss francs plus late payment interest. The Administrative Court of the Canton of Nidwalden upheld the appeal of the Federal Tax Administration and remanded the case to the Cantonal Tax Office for a new assessment.

Considerations

The Federal Supreme Court confirmed the decision of the Administrative Court. The payments made by [Y. AG] to the appellant constitute taxable investment income and not tax-free capital gains. Even though the bankruptcy administration had offset the…