Facts
The appellant, the cantonal tax office of St. Gallen, lodged a complaint against the decision of the Administrative Court of the Canton of St. Gallen, which affirmed the deductibility of maintenance payments to the separated spouse [A.A.] for direct federal tax and cantonal and communal taxes 2011.
[A.A.] and his wife had been living separated since November 2010 and had two children. The husband transferred CHF 3,000.-- per month to his wife from September to November 2011 and CHF 2,800.-- per month from December 2011. He also paid the health insurance premiums for his wife and the children.
The cantonal tax office accepted the deductibility of the maintenance payments for the months of September to December 2011, but not for the months of January to August 2011. The Administrative Appeals Commission and the Administrative Court of the Canton of St. Gallen overturned this decision and allowed the deductibility of the maintenance payments for the entire tax period 2011.
Considerations
The Federal Court examined the deductibility of maintenance payments to separated spouses for direct federal tax and cantonal and communal taxes. It found that the requirements for separate taxation of spouses were met on December 31, 2011, as the spouses were living separated and no longer had a community of goods.
The Federal Court found that the spouses had been living separated since January 2011, as they had separate households and residences and had given up their marital community. The fact that they had a joint account did not change this fact, as they had separate livelihoods and the husband was supporting his wife and children.
The Federal Court affirmed the…