Facts
The complainant [A.] was registered in the register of value-added tax payers since January 1, 1995, and provided administrative board services to various companies. He invoiced value-added tax for his administrative and foundation board fees from 1995 to 2000 without reservation, in accordance with the practice of the Federal Tax Administration at the time. After the Federal Court, with judgment 2A.468/1999 of October 27, 2000, recognized that the provision of services by an administrative board is an independent, non-value-added tax-liable gainful activity, [A.] applied for a refund of the paid taxes.
The Federal Tax Administration rejected the refund application, and the Federal Tax Appeals Commission also rejected the complaint. [A.] then filed an administrative court appeal with the Federal Court, requesting that the decision of the Federal Tax Appeals Commission be revoked and the Federal Tax Administration be instructed to refund the paid taxes to him.
Considerations
The Federal Court examined the question of whether the value-added tax paid by the complainant must be refunded to him after the Federal Court recognized that the provision of services by an administrative board is an independent, non-value-added tax-liable gainful activity.
The Federal Court found that the unconditional payment of the tax precludes a refund, as the taxpayer, by unconditionally declaring and paying the tax, unequivocally expresses his willingness to pay the tax he considers due. A refund is only possible if the taxpayer has legally challenged the tax due under the previous practice or paid it only under…