Facts
The taxpayer operated two sole proprietorships, one of which offered sauna, solarium, and massage services. In 2005, the Federal Tax Administration (ESTV) conducted an audit and determined that the prerequisites for the massage therapists' independent activity were not met. The ESTV then issued an objection decision with a subsequent tax assessment of CHF 53,776. The Federal Administrative Court reduced the tax claim to CHF 42,430.40. The taxpayer filed a complaint with the Federal Supreme Court, as the period from May 1, 2000 to January 1, 2001 was time-barred.Considerations
The Federal Supreme Court stated that the Value Added Tax Ordinance of 1994 (VATO 1994) did not provide for absolute limitation, which corresponds to a qualified silence of the ordinance issuer. The Value Added Tax Act of 1999 (VATA 1999) also did not contain an express regulation on the limitation of old-law value added tax claims. However, this is not to be regarded as a genuine legislative gap, but as a continuation of the state according to VATO 1994.
In line with the case law on the transition from the Federal Council Decree on Direct Federal Tax (DFTA) to the Federal Act on Direct Federal Tax (DFTA), the Federal Supreme Court decided that the…