Dismissal of the appeal against the tax assessment decision due to lack of legitimate interest

Facts

The appellants A.A. and B.A. operate a hotel and are owners of rental apartments in U. The Cantonal Tax Office of Zurich classified the rental of furnished rooms as an independent gainful activity and assigned the properties to the business assets. The appellants requested a higher assessment, which the Administrative Court of the Canton of Zurich rejected, as they had no legitimate interest in the repeal or amendment of the tax assessment decision.

The appellants filed an appeal with the Federal Supreme Court and requested to be assessed with a taxable income of CHF 99,200 and a taxable wealth of CHF 2,581,000. The Federal Supreme Court dismissed the appeal, as the appellants had no legitimate interest in the repeal or amendment of the tax assessment decision.

Considerations

The Federal Supreme Court examined the appellants' right to appeal and came to the conclusion that they had no legitimate interest in the repeal or amendment of the tax assessment decision. The appellants requested a higher assessment in order to avoid a higher tax burden and OASIA contribution obligation in a later tax period. However, the Federal Supreme Court found that this was not a legitimate interest, as the appellants could not demonstrate that they would gain a practical advantage from the higher assessment.

The Federal Supreme Court stated that a legitimate interest in the repeal or amendment of a tax assessment decision only exists if the appellants can gain a practical advantage from the approval of the remedy. As the appellants could not demonstrate that they would gain…