Dismissal of the appeal against the revocation of penalty orders for attempted tax evasion

Facts

The tax authority of the canton of Solothurn initiated a tax evasion procedure against [X. GmbH] because the company had sold a business vehicle (BMW X5 3.0 D) to its shareholder [Z.] at a price below the Eurotax value. The tax authority imposed penalties for attempted intentional evasion of cantonal taxes 2007 and direct federal taxes 2007. [X. GmbH] lodged an objection, which remained unsuccessful. The Cantonal Tax Court of Solothurn revoked the penalty orders.

The tax authority of the canton of Solothurn requested the Federal Court to revoke the judgment of the Cantonal Tax Court and to confirm the penalties. [X. GmbH] and the Cantonal Tax Court requested that the appeal be dismissed, insofar as it was admissible.

Considerations

The Federal Court examined whether the lower court had rightly revoked the penalty orders. It found that the respondent ([X. GmbH] ) had argued before the lower court that it had not been aware that a tax reduction could occur. The lower court had found that the strict proof that the respondent had been aware of the incomplete declaration could not be provided on the basis of the file.

The Federal Court found that the lower court had rightly assumed that the respondent did not have the necessary knowledge to commit a tax reduction. It pointed out that the respondent had had its tax affairs…