Decision on the Calculation of Guarantee Provisions for Cantonal and Municipal Taxes as well as Direct Federal Tax

Facts

[X. AG] , a company domiciled in [R.] /BE, operating in the field of heating and sanitary installations, based its tax return for the 2004 tax period on guarantee provisions amounting to 2% of turnover. The tax administration of the Canton of Bern reduced this provision by CHF 33,350.--. The Tax Appeal Commission of the Canton of Bern reduced the taxable profit, but the Administrative Court of the Canton of Bern increased it again. [X. AG] appealed against this decision to the Federal Supreme Court.

Considerations

The Federal Supreme Court states that the Bernese Depreciation Ordinance (AbV/BE) allows provisions for guarantee and warranty obligations based on the guaranteed turnover of the current financial year without further examination up to a flat rate of 2%. The appellant argues that the turnover of the previous years should also be taken into account. However, the Federal Supreme Court sees no violation of overriding federal law (DFTA, DTHA). The interpretation of the…