Discretionary assessment

A discretionary assessment is used in Swiss tax procedure when the taxpayer does not file a return, files an unusable return, withholds information or makes proper determination impossible. The authority estimates taxable income, wealth, profit or capital using available indications, comparisons and experience. It is not a penalty, but it often leads to higher tax and may be accompanied by procedural fines. Challenging it usually requires the taxpayer to show, with concrete evidence, that the assessment is manifestly incorrect and to provide the missing information within the applicable remedy procedure.