Dismissal of the appeal of the Federal Tax Administration against the lump-sum tax credit for the tax years 2010 and 2011

Facts

A. did not file tax returns or filed incomplete tax returns for the tax years 2010 and 2011. After a voluntary disclosure in 2013, he subsequently declared the capital income subject to foreign withholding taxes and applied for a lump-sum tax credit. The cantonal tax office rejected the applications, whereupon A. filed an appeal.

B. The Tax Appeal Court of the Canton of Zurich upheld the appeal and determined the refund amounts for the lump-sum tax credit for 2010 and 2011.

C. The Federal Tax Administration (FTA) filed an appeal to the Federal Supreme Court with the request to set aside the decision of the Tax Appeal Court and to confirm the refund decisions of the cantonal tax office.

Considerations

The Federal Supreme Court dismissed the appeal of the FTA. It stated that the failure to declare in the ordinary assessment procedure does not lead to the forfeiture of the claim to the lump-sum tax credit. The purpose of the lump-sum tax credit is to avoid double…