Facts
The housing cooperative [A.] (Taxable) had a commercial profit of CHF 1,547.-- in the 2016 tax period. The tax administration of the canton of Thurgau corrected the financial statements and calculated a total income of CHF 4,191,000.--, resulting in a profit of CHF 4,192,547.--. The Taxable appealed and later lodged a complaint with the Tax Appeals Commission of the canton of Thurgau, which was partially upheld. The Taxable then appealed to the Administrative Court of the canton of Thurgau, which dismissed the complaint. Finally, the Taxable lodged a complaint in public law matters with the Federal Supreme Court.
The Taxable had a loan of CHF 6,609,380.40, which it reduced by CHF 5,609,380.40 to CHF 1,000,000.-- in the 2016 tax period. The president of the administration, [B.] , had a loan claim against the Taxable, which reached a total of CHF 6,609,380.40 at the beginning of the 2016 tax period.
Considerations
The Federal Supreme Court applies federal law of its own motion and reviews it with unlimited cognition. The Taxable must be bound by the structures it has created within the framework of its design freedom. The legal design can consist of founding or holding a legal entity, which then results in two different legal and tax subjects.
The Taxable made a balance sheet amendment, which was not permissible because it was made only under the impression of the tax assessment and for the purpose of saving taxes. The Taxable relied on an excusable error regarding the tax consequences of the waiver of claim, which is not…