Facts
The case concerns a taxpayer, X., who acquired a property in Rorschach, in the canton of St. Gall, in June 1959. The tax authorities of Rorschach required tax returns for the years 1959/60, but did not take any action for the following years. The taxpayer received requests for tax returns for the years 1961/62, 1963/64 and 1965/66, but did not respond. The tax authorities then established taxes for the years 1961 to 1964, which the taxpayer contested.
The Administrative Court of the canton of St. Gall rejected the contestation, but the taxpayer appealed to the Federal Court. The Federal Court examined the issue of the statute of limitations for the right to impose taxes on periodic taxes and decided that the right to impose taxes is subject to a five-year statute of limitations from the date on which the tax became payable.
Considerations
The statute of limitations for the right to impose taxes
The Federal Court examined the issue of the statute of limitations for the right to impose taxes on periodic taxes. It decided that the right to impose taxes is subject to a five-year statute of limitations from the date on which the tax became payable. This decision is based on Article 97 of the Tax Act of the canton of St. Gall, which provides for a five-year statute of limitations for tax claims.
Analogous application of the statute of limitations
The Federal Court also examined the issue of the analogous application of the statute of limitations. It decided that the statute of limitations for tax claims can be applied by analogy to the right to impose taxes, to the extent that this is necessary to ensure legal certainty.
The principle of good faith
The Federal Court also examined the issue of the principle of good…