Facts
The appellants, [A.X.] and [B.X.] , lodged a complaint against the judgment of the Administrative Court of the Canton of St. Gallen of 29 August 2011, which confirmed the re-taxation of state and municipal taxes for the years 1997-2007. The re-taxation was carried out on the basis of the finding that [A.X.] belonged to a carpool with his own bus during the relevant periods and his actual transport costs were limited to a cost-sharing of CHF 100.-- per month.
[A.X.] had claimed professional expenses for commuting to work by private car in his tax returns for the periods 1999 to 2007, amounting to 11,500 km per year, and deducted CHF 6,210.-- (each for 1999 and 2000) or CHF 6,785.-- (each for 2001 to 2007) from his taxable income.
Considerations
The Federal Court applies the law ex officio and is therefore not bound by the arguments raised in the complaint or the considerations of the lower court. The complaint in public law matters is admissible.
The cantonal provisions on the deduction of professional costs are in line with the statutory order according to the Federal Act of 14 December 1990 on direct federal tax (DFTA). The lump-sum deduction of professional costs is based on the practicability principle, which allows the legislature to waive detailed individual regulations in certain areas and instead issue schematic provisions.
The tax authority can order a graduated reduction of the mileage…