Facts
The appellants, [X.] and [Y.] , were assessed by the tax administration of the canton of Bern for the tax period 2001 on a taxable income of 47'800 francs for cantonal and communal taxes and 55'900 francs for direct federal tax. After an objection, the tax administration accepted a deduction of 25'000 francs for business provisions and reduced the taxable income to 20'400 francs for cantonal and communal taxes and to 30'900 francs for direct federal tax.
The tax administration found that the appellants had deducted the business-related portion of mortgage interest in the amount of 22'800 francs in the tax year 2001 not only from income from self-employment but also as private debt interest. It therefore required the appellants to pay additional taxes of 5'353.85 francs for cantonal and communal taxes 2001 and 318.40 francs for direct federal tax 2001.
The appellants appealed to the Administrative Court of the canton of Bern, which dismissed the appeal. The appellants then filed an appeal in public law matters with the Federal Court.
Considerations
The Federal Court examined whether the tax administration of the canton of Bern had rightly levied the additional taxes and tax penalties. It found that the appellants had deducted the business-related portion of mortgage interest twice, which constitutes a new fact within the meaning of Art. 151 DFTA, giving rise to a liability for additional tax.
The Federal Court found that the appellants had acted negligently by not accepting the tax assessment decision of 10 April 2003, but instead filing an objection without drawing the tax administration's attention to the error. This behavior constitutes a culpable negligence within the meaning of the concept of negligence.
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