Cunning without evidence unsuccessful

A taxpayer purchased a property in August for CHF 730’000 and sold it in March of the following year with a profit of CHF 870’000. He declared renovation expenses of CHF 595’000, which were to reduce the property gains tax. As proof of the renovation work, he submitted invoices from construction and renovation companies in the full amount of CHF 595’000. These invoices also served as cash receipts for the money received. The court did not recognise these receipts as proof of the payments.

An expert inspection of the property revealed that no renovation work had been carried out. The taxpayer had to pay the property gains tax in full.