Workshop by Nina Blanz and Olivier Margraf on the occasion of the ISIS) seminar on May 5, 2025 entitled "Assessment procedures including the special features of discretionary assessment"
Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)Rütli-Immobilien AG is headquartered in the canton of Schaffhausen. It holds a real estate portfolio that spans the entire country. In addition to properties in the canton of Schaffhausen, its real estate holdings are located in the cantons of Zurich, Thurgau, Aargau, Solothurn, Bern, and Vaud.
The tax representative of Rütli-Immobilien AG applies to the canton of domicile for an extension of the deadline for filing the 2024 tax return until the end of 2025, which is granted as requested. The tax representative is quite surprised when, in the course of 2025, reminders to file the 2024 tax return start arriving from the other cantons.
The sole shareholder, Baldwin W. Bringolf, receives annual lump-sum expenses of CHF 48,000, which the tax assessment authority of the canton of domicile has granted him in each tax assessment procedure. When assessing the 2024 tax period, the canton of Thurgau reviews the lump-sum expenses and counts CHF 24,000 as benefits in kind. The tax representative files an objection, arguing that a canton of secondary tax residence cannot deviate from the practice of the canton of primary tax residence.
Variant: The expense regulation is based on an expense regulation approved by the Canton of Schaffhausen, which applies starting with the 2023 tax period.
Rütli-Immobilien AG has set aside corresponding provisions for planned major repairs. The tax representative submitted a corresponding ruling to the canton of domicile, Schaffhausen, which was approved on March 21, 2023, effective as of the 2023 tax period. The canton of Solothurn does not adhere to the rates specified in the ruling for the 2023 assessment. The tax representative files an objection and cites the ruling as legal precedent.
The 2024 tax period is assessed by the involved cantons at different times. The canton of Vaud, which assesses last, does not issue the 2024 assessment until August 3, 2028. The assessments of the other cantons are already final. The Canton of Vaud deviates from the allocation proposal accepted by the other cantons, leading to intercantonal double taxation. The tax representative, who does not speak French, assumes that the cantons will reach an agreement among themselves and thus resolve the double taxation. After all, there is a corresponding constitutional right to do so.
The Frauenfelder couple submitted their 2018 tax return in August 2019. It contains no indication of a representative relationship.
For various reasons, the tax return remains unprocessed for a very long time. Consequently, in November 2023, the tax administration sent the interruption of the statute of limitations for the 2018 tax period via A-Post Plus to Trust Me Treuhand AG as the tax representative. Although there is no written power of attorney for this trust company in the files, Trust Me Treuhand AG prepared Mr. Frauenfelder’s 2018 financial statements and requested an extension for filing the 2018 tax return in March 2019.
The tax assessment was served on Trust Me Treuhand AG on December 20, 2024. The Frauenfelders did not contest it and paid the tax bill. Only later did they claim that the 2018 tax assessment was void due to the statute of limitations and demand a refund.
Egon Gründlich is a tax assessment expert in the municipality of Neuhausen. Although he does not currently live in this municipality, he grew up in Neuhausen and still has a strong network there. He knows the majority of the residents personally and maintains a large circle of friends and acquaintances in Neuhausen.
Mr. Gründlich also prepares the tax return for Mr. Flegel, whom he has known since childhood and whose son he went to school with. The return is missing various details and supporting documents, which is why Mr. Gründlich issues a request for additional information. Mr. Flegel responds to the request within the deadline. However, ambiguities remain, and Mr. Gründlich feels compelled to send Mr. Flegel a second request. Since this request is also not fulfilled to his satisfaction, he sends an additional reminder, which, however, goes unanswered. Mr. Gründlich then proceeds with Mr. Flegel’s tax assessment but does not accept various deductions due to a lack of supporting documents.
Mr. Flegel disagrees with the assessment and files an objection. At the same time, he requests that Mr. Gründlich recuse himself, as he does not want the assessment and the objection to be handled by the same person. He further argues that Mr. Gründlich did not take his submissions seriously and issued requests for documents that were far too extensive, going well beyond what is necessary and reasonable for the tax assessment.
Mr. Gründlich already assessed Mr. Flegel last year and ruled against him in the appeal. Mr. Flegel uses this as the basis for his request for recusal.
The two men have been friends for years and meet regularly as board members of the Neuhausen Music Association. Nevertheless, Mr. Gründlich proceeds with Mr. Flegel’s tax assessment.
Kevin Looser files his 2024 tax return. During the assessment process, it is determined that Kevin did not report all taxable items.
Specifically, income from secondary employment amounting to 5% of his total income is missing (scenario: 40%).
In addition, he declared property maintenance costs of CHF 100,000, of which CHF 60,000 were value-enhancing expenses.
Likewise, non-monetary benefits from his company were not declared, specifically
Ms. Moser feels offended by a request from the tax assessment specialist. In her request, the specialist demands further details regarding the claimed commuting expenses (car costs) and property maintenance. Ms. Moser responds to the request with a single sentence: “That is none of your business or that of your snooping agency!”
Furthermore, the tax assessment expert suspects Ms. Moser of not having declared all her accounts. She contacts the regional bank with a request to disclose all of the taxpayer’s banking relationships.
The tax assessment expert refrains from sending Ms. Moser a request for additional information. Instead, she sends her a proposed tax assessment in which only public transportation costs—rather than commuting expenses—are allowed as a deduction. She reduces the claimed property maintenance costs, providing a detailed justification. The proposed assessment states that Ms. Moser may raise her objections within 30 days, provided she supports them with supporting documents.
The tax assessment specialist is not surprised when Ms. Moser informs her that she does not agree with the proposed assessment, will under no circumstances submit a justification or supporting documents, and expects an assessment in accordance with her tax return.
Justin and Kevin McGregor, brothers, are the two shareholders of McGregor AG. Justin holds 60 percent of the shares, Kevin 40 percent. Kevin left McGregor AG in 2025 and sold his shares to Justin. Kevin, a born sales representative, had never been interested in finance or accounting. Until his departure, Justin was a member of the board of directors with joint signature authority (variant: sole signature authority).
For the 2024 tax period, the tax authority charges CHF 200,000 in unsubstantiated expenses and allocates these to Justin and Kevin in proportion to their ownership stakes. Justin also claimed his honeymoon with Cinderella, amounting to CHF 40,000, as an expense. Kevin is surprised by the high assessment and engages attorney Kuno Achtsam. He requests access to the assessment details of McGregor AG.
BE Trug AG is headquartered in the canton of Thurgau. The Chairman of the Board of Directors and sole shareholder of BE Trug AG is B. Trüger, who resides in the canton of Schaffhausen. The following items were recorded as expenses in the annual financial statements of BE Trug AG:
In the 2023 tax assessment of BE Trug AG, these items are corrected for tax purposes. The assessment becomes final and uncontested.
Anne Klingler, born in 1948, was a professor of international law until her retirement and spent a large part of her career abroad. She returned to Switzerland in 2015. Overwhelmed by administrative matters and focused on her publishing and lecturing activities, which she continues even after retirement, she fails to file tax returns despite reminders, forcing the tax authority to issue discretionary assessments.
The following tax factors are used as a basis:
Table of Tax Factors
In addition, fines pursuant to Art. 174 DBG totaling CHF 30,000 are imposed.
Anne Klingler does not file an objection in any of these cases, so the discretionary assessments become final. Tax collection results in income garnishments, which, as tax claims increase, also lead to certificates of loss. From the garnishment proceedings, the collecting authority is aware of the actual income circumstances, which are significantly lower than the estimated tax factors.
Table 2 Tax Factors
World Wide Services AG is headquartered in Arbon, Canton of Thurgau, and spun off a production division to a subsidiary in 2021. The tax representative, Mostindien Steuerberatungs AG, submitted a ruling to the Cantonal Tax Administration in advance for this purpose. In it, the blocking period under Art. 61(2) DBG is waived on the assumption that this constitutes discretionary law; however, it is simultaneously stated that no sale of the subsidiary or the transferred business is planned.
Due to a heavy caseload and with the summer holidays approaching, the responsible case officer signs the ruling without having taken note of the “waiver” of the blocking period.
In 2025, World Wide Services AG sells all of its equity interests in its subsidiary to a competitor. The cantonal tax administration subsequently initiates a back-tax assessment procedure. World Wide Services AG contests this, submitting the ruling.
Luna Looping is a German citizen. She is unmarried and lived in Munich for a long time. Since several people in her circle of acquaintances had already settled in Switzerland, she applied in 2022 for an interesting position at an international corporation headquartered in the canton of Schaffhausen. She was offered the position, left Munich, obtained a B permit, and moved to Schaffhausen. Since she began working in September 2022, her employer has been withholding tax in the Canton of Schaffhausen on her income of CHF 100,000.
Luna Looping has been subject to Swiss social insurance since moving to Switzerland. She has learned that she can reduce her tax burden in Switzerland by making contributions to Pillars 2 and 3a. Her financial circumstances allow her to make contributions to Pillar 3a as early as the year she moved to Switzerland.
Shortly thereafter, Luna Looping met her future husband in Schaffhausen. He is a resident of Singen (Germany). The couple married in 2024 and have lived in Singen ever since. Luna Looping continues to work for her Swiss employer and commutes from Singen to Schaffhausen. Her husband works for an employer in Singen. Luna Looping earns 60 percent of the couple’s total income.
Luna Looping marries Hans Meier, a Swiss citizen residing in Schaffhausen. They live together in Schaffhausen. Unfortunately, however, luck is not on their side, and they divorce by the end of 2025. Luna Looping continues to live and work in Schaffhausen.
