Facts
The appellant [A.A.] was the sole member of the board of directors of [B. AG] , based in [U.] (SG). Together with his then wife, he was taxed on 16 March 2005 for cantonal and communal taxes 2003 with a taxable income of CHF 65,000.-- and a taxable wealth of CHF 0.--, as well as for direct federal tax 2003 with a taxable income of CHF 59,400.--, in accordance with their duty to provide information.
After completing audits at [B. AG] and [C. AG] , the Cantonal Tax Office of St. Gallen opened a supplementary tax procedure for the former married couple [A.] on 19 July 2012 regarding the tax period 2003. Based on the income to be taxed retrospectively, totaling CHF 298,000.--, it imposed supplementary taxes of CHF 89,120.40 (cantonal and communal taxes 2003) and CHF 44,621.55 (direct federal tax 2003) on the former spouses [A.] on 22 November 2013.
The appellant filed an appeal in public law matters and a subsidiary constitutional appeal with the Federal Court on 14 September 2016, requesting that the contested decision be set aside and the offsetting of valuable services to taxable income in the amount of CHF 215,000.-- be reversed.
Considerations
The Federal Court has declared the appeal in public law matters admissible and the lower court has not violated its duty to provide reasons or the right to be heard. The lower court has partially presented the facts in an incomplete manner, but the Federal Court has supplemented the facts based on Art. 105 para. 2 FSCA.
The appellant received the amount of CHF 215,000.-- on behalf of and in representation of [D. AG] , but the lower court has established that the appellant received the amount as compensation for independent gainful activity. The appellant has not provided evidence…