Facts
The [A. AG] , a trading company based in [U.] /SZ, holds various domestic and foreign subsidiaries and is controlled by a foreign parent company. It operates its business activities almost exclusively abroad and invoices its services mainly in euros. In the financial years 2003 to 2009, it maintained two accounting circles in its books, one in euros (functional currency) and the other in Swiss francs (presentation currency). The annual conversion resulting from this gave rise to increasing conversion differences, initially positive (conversion gains of around xxx million francs from 2003 to 2007), later negative (2008 and 2009). The taxpayer filed tax returns for 2008 and 2009, in which it had deducted the negative conversion differences.
The Administrative Court of the Canton of Schwyz overturned the appeal decision and referred the matter back to the lower instances. It considered that, from the perspective of the principle of equal treatment and with regard to the principle of taxation according to economic performance, the tax non-consideration of negative conversion differences was not justified. The losses could, however, only be taken into account to the extent that positive differences had previously been recorded, i.e. in the amount of around xxx million francs.
Considerations
The Federal Court examines the jurisdiction and the further requirements for admission of its own motion. The appeal in public law matters is generally admissible. The Federal Court applies the law of its own motion and is not bound by the arguments presented in the appeal.
The taxpayer criticizes that the contested decision violates the principle of good faith, the principle of legal certainty, and the principle of taxation according to economic performance. The Federal Court addresses the question of the change in practice and states that the legal situation, as presented by the Federal Court in BGE 136 II 88,…