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| True, tax rate on wealth is low. But declaring wealth (for ex. bank account in another country) means one is also letting the tax authorities know the interest you earn on it from the annual bank statement.
If this interest is quite significant say, few thousand euros then this sum is coverted to CHF and added as income and taxed (at an higher tax slab). The additional tax one would thus pay would be several times more than the tax paid on the capital wealth ...
I thus can't understand how from purely financial point of view, declaring wealth means paying only a paltry tax sum ... have I got something wrong?
Ashish | |
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Every asset attracts wealth tax. If the asset yields interest or dividends or bonus or profits, then such yield is taxed as income. Any large changes in declared assets, may provoke the tax office to ask you for an explanation.