Facts
The cantonal tax office of Zurich estimated the [X. AG] for the state and communal taxes 2004 at its discretion, as it had not submitted a tax return despite being reminded to do so. The [X. AG] lodged an objection against this assessment, which was rejected by the cantonal tax office due to the failure to submit a complete tax return at the same time. The Tax Appeals Commission II of the Canton of Zurich overturned this decision and referred the matter back to the cantonal tax office. The Administrative Court of the Canton of Zurich dismissed the appeal by the cantonal tax office.
The cantonal tax office of Zurich requests the Federal Court to overturn the decision of the Administrative Court and confirm its decision on the objection. The [X. AG] and the Administrative Court of the Canton of Zurich request the dismissal of the appeal.
Considerations
The lower court based its decision on § 140 para. 2 of the Zurich tax law, which is in agreement with Art. 48 para. 2 of the Federal Act on the Harmonization of Direct Taxes of the Cantons and Communes. These provisions require a statement of reasons and the naming of evidence when challenging estimated tax assessments.
The Federal Court has ruled that the requirements for the statement of reasons for an objection to an estimated tax assessment must not be excessive. It is sufficient that the assessment requested by the taxpayer can be reviewed and verified by means of evidence. The objection must present the facts in a substantiated manner and name the evidence for this presentation of the facts.
The lower court…