Overview of the tax law decisions of the Zurich Administrative Court published in October 2021.
- VGr ZH, 16 June 2021, SR.2020.00022: Discretionary determination of the after-tax bases in the case of a public limited company (appeal pending before the Federal Supreme Court): The taxpayer is a company active in the purchase and sale of precious metals. Before the Administrative Court, it argued for the first time that, contrary to what was assumed in the self-disclosure, it had not conducted its business in its own name and for its own account, but in its own name and for the account of a third party and thus had the business model of the commission. The Administrative Court considered that the taxpayer had not provided the proof of a fiduciary relationship that was incumbent upon her, which was why the black money accounts were to be attributed to her. The Administrative Court affirmed the existence of a reason for subsequent taxation, under-taxation and the requirements for discretionary assessment. It upheld the complaint and the appeal insofar as the right to assess an additional tax for the 2005 tax period was time-barred, and otherwise dismissed the taxpayer's appeal.
- VGr ZH, 16 June 2021, SR.2021.00020: Dismissal of appeal against decision to refer back (this decision is final): The appeal is directed against a decision by which the Tax Appeal Court rejected, among other things, the deduction of the brokerage commission, but referred the matter back to the assessment procedure in order to implement the principle of separate determination of profits. The administrative court considered that the obligated party could challenge the new assessments to be issued in a second legal action, which is why the interim decision did not cause any irreparable disadvantage. Since the requirements for challenging the rejection decision of the lower court were not met, it did not hear the appeal.
All decisions of the Administrative Court of Zurich are available here.
