Facts
The spouses [A.A.] and [B.A.] born [C.] (hereinafter: the taxpayers) have a tax domicile in [U.] (GB). In Switzerland, they are subject to limited tax liability in various places due to economic affiliation, including the Canton of Zurich, where they own real estate. Furthermore, the husband has been qualified by the Canton of Zurich as a commercial real estate trader for tax purposes since 2008.
On April 16, 2013, the Federal Customs Administration searched the Villa [X.] in [U.] /ZH, which is owned by the taxpayers. The reason was the suspicion of customs and value-added tax offenses in connection with the importation of works of art. The FCA questioned the taxpayer and seized extensive files.
The Cantonal Tax Office of Zurich (KStA/ZH) initiated supplementary tax and penalty proceedings against the taxpayers on October 30, 2015, for the tax years 2005 to 2009. In the course of these proceedings, the office requested the taxpayer to provide more detailed information and submit documents, for which it provided a list of 18 items.
On January 27, 2016, the KStA/ZH issued a supplementary tax ruling on the state and municipal taxes of the Canton of Zurich and the direct federal tax (supplementary taxes and fines for tax evasion, tax years 2005 to 2009). The office set the supplementary taxes (including interest) for the tax years 2005 to 2009 at around Fr. yy million (state and municipal taxes of the Canton of Zurich) and around Fr. yy million (direct federal tax).
The taxpayers filed an appeal with the Administrative Court of the Canton of Zurich on February 26/March 1, 2016 (state and municipal tax) and a complaint with the Tax Appeals Court of the Canton of Zurich (direct federal tax). The Tax Appeals Court referred the matter to the Administrative Court for lack of jurisdiction.
The Administrative Court of the Canton of Zurich, 2nd Division, dismissed the two remedies with decisions SR.2016.0005 and SR.2016.0009 of June 22, 2016.
The taxpayers filed a complaint with the Federal Supreme Court on August 2, 2016. They request the annulment of the contested decision and thus also of the two securing orders of January 27, 2016.
Considerations
The Federal Supreme Court has to consider the complaint in public law matters against the decision of the Administrative Court of the Canton of Zurich, 2nd Division, of June 22, 2016. The complaint is directed against the securing orders of the Cantonal Tax Office of Zurich of January 27, 2016.
The Federal Supreme Court examines the complaint from the point of view of the violation of constitutional rights, in particular the general prohibition of arbitrariness (Art. 9 Cst.). The taxpayers complain of a violation of their right to be heard and an…