Facts
The [X.] Consulting AG was founded on 27 November 2003 and aims to provide financial services of all kinds. The founders were [A.Y.] and his wife [B.Y.] . In 2004, the taxpayer concluded three contracts with the [Z. AG] and the [Y. GmbH] , including a purchase and assignment agreement, whereby the taxpayer sold 55 percent of the shares in the [Y. GmbH] to the [Z. AG] .
The taxpayer filed the tax return for the first financial year (2003/2004) and declared the net profit according to the financial statements. However, it deducted the capital gain from the sale of the aforementioned GmbH shares, resulting in a taxable profit of CHF 0.--. The cantonal tax office of Zurich and the lower courts denied the participation deduction for the sale of the [Y. GmbH] shares, as the taxpayer had only held the participation for approximately three months.
Considerations
The Federal Court dismissed the complaint of [X.] Consulting AG regarding direct federal tax and cantonal and municipal taxes. The complainant had argued that the sale of the participation in the [Y. GmbH] was part of a conditional legal transaction and that the lower court had obviously incorrectly established the facts.
However, the Federal Court found that the Administrative Court and the Tax Appeals Court had thoroughly analyzed the contracts and that it was a legally effective transaction from the outset with simultaneous performance of the services. The purchase price of EUR 4,400,000.-- was to be paid within four working days after the legally valid transfer of the shares to the buyer.
The Federal Court also found that the…