Facts
The [X. AG] was notified of the assessments for direct federal tax 1995 - 1997 on March 31, 1999. The 1997 federal tax assessment resulted in a annual loss of CHF 196,345.--, so that no taxable profit was determined. The taxpayer objected to the resulting loss carryforward of a total of CHF 584,363.-- from the 1997 federal tax assessment as of December 31, 1997, in a letter dated April 19, 1999. The tax administration of the canton of Thurgau treated this letter as an appeal and, after some correspondence, rejected the [X. AG] 's request to increase the loss carryforward on November 1, 1999.
On appeal, the Tax Appeals Commission of the canton of Thurgau confirmed the decision of the cantonal tax administration of November 1, 1999, with the same reasoning, on March 20, 2000. The [X. AG] filed an appeal with the FJA on April 25, 2000, against the decision of the Tax Appeals Commission, requesting that "the loss carryforward as of December 31, 1997, be set at CHF -804,127.--".
Considerations
The FJA, acting as an administrative court, partially upheld the appeal and overturned the decision of the Tax Appeals Commission of March 20, 2000, and the appeal decision of the tax administration of November 1, 1999. However, it did not consider the appeal to the extent that it requested a different determination of the loss carryforward amount.
The lower courts determined the loss eligible for carryforward as of December 31, 1997, pursuant to Art. 67 para. 1 DFTA, to be CHF 584,363.--. The appellant primarily sought to have this amount increased. The question of the total carryforward losses only arises when an offset against profits is actually considered.
The FJA ruled that the appellant has a legitimate interest in having the contested decision…