Facts
The appellant, [A.] , and his wife, [B.] , had their tax domicile in [V.] /SH during the tax years 2005-2007. The wife entered into a trust and mandate agreement with her uncle on May 3, 2005, which enabled her to join the board of directors of [X. AG] . The uncle transferred a registered share in [X. AG] to his niece in trust and undertook to transfer his shares to her within the framework of a trust relationship.
The spouses declared the shares in [X. AG] in their joint tax returns without reference to the trust as their property, which led to their being subject to wealth tax. In the years 2005-2007, the company incurred business-related expenses that were not justified and benefited the wife.
The cantonal tax administration of Schaffhausen initiated a tax reassessment and tax evasion procedure and imposed additional taxes and penalties on the spouses. The appeal and the legal remedies to the High Court of the Canton of Schaffhausen were unsuccessful.
The appellant filed an appeal with the Federal Supreme Court and requested the annulment of the decision of the High Court and the approval of his legal remedies.
Considerations
The Federal Supreme Court examined the subjective allocation of the monetary benefits and came to the conclusion that they were to be allocated to the wife. The trust agreement between…