Confirmation of Tax Penalties for Evasion of Direct Federal Tax and Cantonal Taxes

Facts

In this case, the issue was the taxation of services that the opposing party [A.] had received from [C. GmbH] in 2005. The tax administration of the Canton of Bern imposed additional taxes and penalties on [A.] for tax evasion. [A.] filed an appeal and complaint, which were partially upheld by the Tax Appeal Commission and the Administrative Court of the Canton of Bern. The tax administration of the Canton of Bern then filed a public law appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court concluded that the services provided by [C. GmbH] to [A.] should be directly attributed to him as income and not through a participation relationship with his sister. [A.] had intentionally failed to declare these services and thereby fulfilled the elements of tax evasion under Art. 175 para. 1 DFTA. The sentencing by the tax administration was considered…