Unconstitutionality of the Equalization of Single-Parent and Two-Parent Families in Taxation

Facts

Ms. A. is unmarried and a single mother of a minor son. For the 2001 tax year, she was assessed with a taxable income of CHF 58,600.- and taxable assets of CHF 36,000.-. She filed an objection to the assessment, as the St. Gallen regulation on the taxation of single-parent families violates Art. 11 of the Tax Harmonization Act (DTHA). The Administrative Court of the Canton of St. Gallen upheld Ms. A.'s appeal and overturned the assessment. It concluded that Art. 11 para. 1 sentence 2 DTHA, which prescribes an exactly equal tax reduction for single-parent and two-parent families, is unconstitutional. Nevertheless, the provision must be applied, as Art. 191 of the Federal Constitution mandates the application of unconstitutional federal laws. The St. Gallen Cantonal Tax Office subsequently filed an administrative court appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court first examined the interpretation of Art. 11 para. 1 sentence 2 DTHA. The wording of the provision is clear and leaves no room for interpretation: Widowed, separated, divorced and unmarried taxpayers with children or dependents must receive exactly the same tax reduction as jointly taxable spouses. However, this equalization of single-parent and two-parent families in taxation proves to be unconstitutional. On the one hand, it violates the principle of taxation according to economic capacity under Art. 127…