Facts
Company A AG, headquartered in X., is engaged in the purchase and sale, brokerage, management, and financing of real estate according to the commercial register entry. Its assets primarily consist of the Villa Y. property in X. Company A AG is held by Company B AG in Z., which in turn is wholly owned by Company C AG. The owner of Company C AG is D.
On November 30, 1998, Company A AG requested the Cantonal Tax Administration of Graubünden to determine that it would be granted privileged treatment under Art. 207 of the Federal Act on Direct Federal Taxation (DBG) during its planned liquidation. The intention was for D to acquire the shares of Company A AG and subsequently liquidate Company A AG, resulting in the transfer of the property in X. to D's private ownership.
The Cantonal Tax Administration rejected the request, as the sale of the property to D would only be an interim phase, and the privilege under Art. 207 DBG would therefore not apply. Company A AG filed an appeal, which was upheld by the Administrative Court of the Canton of Graubünden.
The Federal Tax Administration then filed an administrative court appeal with the Federal Supreme Court, requesting the annulment of the decisions of the Administrative Court and the Cantonal Tax Administration.
Considerations
The Federal Supreme Court upholds the appeal of the Federal Tax Administration.
First, the Federal Supreme Court clarifies that the appeal period for the Federal Tax Administration only began with the notification of the judgment to the Federal Tax Administration itself, and therefore the appeal was filed in a timely manner.
On the merits, the Federal Supreme Court states…