It was the first erotic street establishment off the main. In the industrial district of the St. Gallen municipality of Au the Club Palladium is located. In ten rooms the Free to indulge your private pleasure. The guests pay admission, even the prostitutes. The operator is therefore assumed that the persons who provide sexual services to purchase independently.

The Swiss Federal tax administration is of a different opinion. Two years ago, you paid the establishment a visit. The Steuervögte from Bern were even twice locally, once in August 2017 and once in September 2017. They examined the Figures for the operation.

their findings: The establishment has blundered in the accounting, and the turnover incorrectly recognised. The bill flapped a few weeks later to a brothel. The operator, A. T.* (55) fought back, however, before the Federal administrative court, but lost.

Hotspot for Free

The judgment, in October, 2019 is spoken, is VIEWS. It is the Steuerpuff features in detail. T. does not want to speak to. On various phone calls he has not responded. On SMS requests, he responds curtly. “No interest,” writes the former textile entrepreneurs.

The Palladium celebrated in autumn 2013, dir. It is one of several establishments in the Rhine valley municipality. The area is considered a Hotspot for Free, because Prostitution is forbidden in the Catholic Vorarlberg. For the “observer” is an Au SG is the place with the highest brothel density of the country.

the brothel-owner T. deserved it well. His prostitutes also. The Steuervögte from Bern estimated the turnover of sex workers to almost 300 Swiss francs per day, such as the judgment of the Federal administrative court performs. Accordingly, eight women per day were working in the first year in the Sexsalon. In the second year there were nine. In the third ten. And in the fourth, eight.

millions of Sex

The revenue from sexual services amounted in this period to over 3 million Swiss francs. The Palladium not reported these transactions in the books. Accordingly, the operating company didn’t pay VAT on it.

The Swiss Federal tax administration now requires several hundred thousand Swiss francs. According to the VIEW of the calculation of the value in dispute is at least a quarter of a million. T. this number is uncommented. To want requests he take no position.

the contractor is otherwise outspoken. About two and a half years he wrestled with the authorities in order to obtain a permit for the conversion of the former factory. He was also frankly, to go for decades into the Puff. His Club he has described as a place where guests can “spend a couple of hours, in the case of cigarettes and a card game.”

criticism of Bern

And in a court of law, the entrepreneur takes no sheet before the mouth. In the complaint against the tax notice of the sexual are referred to Leister inside, quite casually, as “Girls”. They had exercised their activity in their own right. The demand of the Steuervögte had been wrongly charged.

Even if the court should be answered in the negative, whether the calculation of the turnover of “reality”, it means. The entrepreneur claims that the Club is active in providing sex services would be, on average, during the seven days per month “indisposed”. If you end the week with einberechne, remained his “Girls” only “13 to 15 possible days of attendance in the Club”.

The judge in St. Gallen had no ear for it. You have rejected the complaint in full and leave T. on the costs of the proceedings in the amount of 8500 francs to sit.

* Name