Facts
The opposing party [X.] completed an apprenticeship as a mechanic and later obtained a commercial diploma while working. He then also attended the Higher Vocational School for Business (HFW) in St. Gallen on a part-time basis, which leads to the title of Business Economist HF. In his 2001 tax return, he declared the costs for this HFW training as deductible continuing education expenses. However, the Tax Administration of the Canton of Thurgau treated the costs as non-deductible training expenses and refused the deduction. After several instances, the case ultimately reached the Federal Supreme Court.Considerations
The Federal Supreme Court decided that the costs for the HFW training constitute deductible continuing education expenses and not non-deductible training expenses. Although the HFW training represents an independent additional education that goes beyond the existing commercial school education, the opposing party's primary goal was to deepen his knowledge for his current position as a buyer and to secure his existing position. The training did not lead to an internal promotion, and the opposing party even committed to…