The Supreme Court has ruled that a period of twelve years for an additional assessment for gift tax applying to foreign-source income and wealth is not in conflict with EU law. The tax authorities may impose a revised assessment for taxes wrongly unpaid, albeit subject to time limits. The time limit is five years for domestic-source income and wealth. For foreign-source income and wealth the time limit is twelve years.
The case concerned was a woman who had been given an amount from Swiss bank assets by her father in 1998 which she failed to declare. An additional tax assessment for 1998 gift tax was imposed on her. The woman believed EU law was misapplied as the tax assessment had not been imposed until 17 years later. The Supreme Court stated that a term of 12 years for an additional assessment was not in conflict with EU law. The court argued that if the extended additional tax assessment period applicable to IB and VB is not in conflict with EU law, the same applies to the additional tax assessment period of gift tax. And if savings and income from assets have been concealed from member state tax authorities and there are no clues as to their existence, the member state concerned can apply a longer additional tax assessment period if these assets are held in another member state than if they are held in the member state first mentioned. In conclusion, the appeal in cassation was dismissed.
Supreme Court, September 9, 2020, ECLI (abridged): 1600