Facts
The defendant, X., is a shareholder and member of the board of directors as well as an employee of Y. AG. Y. AG is 77.4% owned by Y. Holding AG, in which X. has a 50% stake. In November 2004, the Cantonal Tax Administration/VS conducted an audit of the books at Y. AG for the fiscal years 2001 to 2003.
The tax authority repeatedly requested X. to provide detailed account statements for the calendar years 2001, 2002, and 2003 for two accounts he declared at the Walliser Kantonalbank, under threat of a penalty. After X. repeatedly refused to submit the requested documents, the tax authority imposed a penalty of CHF 500 on December 14, 2005, as threatened, due to refusal to provide information.
The single judge of the Cantonal Court of Valais upheld an appeal against the ruling on September 21, 2006. The tax administration of the Canton of Valais has filed an administrative appeal with the Federal Court against this decision.
Considerations
The Federal Court has ruled that the tax authority can request all information and documents from the taxpayer that may be relevant to their taxation, provided they do not exclusively concern their business partners and do not involve unreasonable effort.
The cantonal provision that limits the obligation to provide information and documentation to documents and information "necessary for taxation" contradicts the harmonization law requirements and, to that extent, Art. 42 para. 2 DTHA applies directly.
The Federal Court has also ruled that the tax authority can request…