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  #61  
Old 03.11.2011, 19:57
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Re: WARNING: hit with a huge tax bill.

I have just received a letter from Zurich Tax office for 2009..

I pay tax at source.

I was a contractor from Jan 2009 - Oct 2009, then took a fixed deal but it was signed off as perm role.

Tax office saying my expat allowance for home in UK is invalid even though i was on a limited contract.

They are now also asking for another 4289 SF but will take it at source, no details on what its for.

Is this normal dealings over here, i thought Tax at source would sort everything out...

Cheers

Rob
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  #62  
Old 03.11.2011, 20:16
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Re: WARNING: hit with a huge tax bill.

Tax at source is just a guess/estimate. If you earn over a certain amount (I think it's 120,000) then you need to fill in a tax form and then they calculate the actual amount. theoretically it's close to the amount taken at source.
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  #63  
Old 03.11.2011, 20:21
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Re: WARNING: hit with a huge tax bill.

Plus tax at source doesn't usually take into account allowances for homes outside the country. So I wonder how that go put in there to begin with.
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  #64  
Old 03.11.2011, 20:48
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Re: WARNING: hit with a huge tax bill.

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It does if only one works.

Tom
Which is why me and my GF have decided that marriage is a pretty stupid idea at the moment as we're both working.

In fact I know of one couple that divorced, but remained living together for this very reason. They stated the equivelent of "irreconcilable diferences" as the reason, but held back on completing the sentence which was "with the government regarding out tax situation"

Personally I find it abhorrent that marriage should be penalised in this way.
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  #65  
Old 03.11.2011, 21:01
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Re: WARNING: hit with a huge tax bill.

But if you divorced for tax reasons, wouldn't you need to prove that ut was a 'real' divorce, in the same way as sometimes have to prove that theirs is a genuine marriage?
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  #66  
Old 03.11.2011, 21:34
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Re: WARNING: hit with a huge tax bill.

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But if you divorced for tax reasons, wouldn't you need to prove that ut was a 'real' divorce, in the same way as sometimes have to prove that theirs is a genuine marriage?
No. Why would you? There is no reason you can't divorce and then get back together.

Anyway, the only want to know if it's a "real" marriage if you have immigration / citizenship issues.

Although I get why some would divorce. I just find it dangerous if (god forbid) something happens to one of the two.
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  #67  
Old 03.11.2011, 21:37
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Re: WARNING: hit with a huge tax bill.

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Plus tax at source doesn't usually take into account allowances for homes outside the country. So I wonder how that go put in there to begin with.
It also doesn't account for income earned from those homes outside the country. Depending on your income outside of CH, tax at source may mean you end up paying less tax.
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  #68  
Old 03.11.2011, 21:55
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Re: WARNING: hit with a huge tax bill.

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I have just received a letter from Zurich Tax office for 2009..

I pay tax at source.

I was a contractor from Jan 2009 - Oct 2009, then took a fixed deal but it was signed off as perm role.

Tax office saying my expat allowance for home in UK is invalid even though i was on a limited contract.

They are now also asking for another 4289 SF but will take it at source, no details on what its for.

Is this normal dealings over here, i thought Tax at source would sort everything out...

Cheers

Rob
About "They are now also asking for another 4289 SF"

That is not a huge tax bill?? I had bigger repair bills for just 2 of my cars already this year.

Last edited by marton; 03.11.2011 at 22:28.
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  #69  
Old 03.11.2011, 23:37
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Re: WARNING: hit with a huge tax bill.

They included my UK home as i was receiving Expat tax allowance when i was contracting, so i had to fill it in tax form, then they started asking for info on property price, mortgage statement, todays value etc etc..

Now their saying i should not have had the allowance, so need to call them tomorrow to find out whats going on..

Agency advised i wa entiled to allowance and surprised tax off saying No...

The 4289 SF bill says just info we will take tax at source, how do they do that over the next year or i one go ??

Just didnt expect to pay anymore, they all ready taken about 18,000... Guys at work say they pay about 10-15K a year max...
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Old 04.11.2011, 00:50
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Re: WARNING: hit with a huge tax bill.

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They included my UK home as i was receiving Expat tax allowance when i was contracting, so i had to fill it in tax form, then they started asking for info on property price, mortgage statement, todays value etc etc..

Now their saying i should not have had the allowance, so need to call them tomorrow to find out whats going on..

Agency advised i wa entiled to allowance and surprised tax off saying No...

The 4289 SF bill says just info we will take tax at source, how do they do that over the next year or i one go ??

Just didnt expect to pay anymore, they all ready taken about 18,000... Guys at work say they pay about 10-15K a year max...
Oh, Ok, That makes more sense. They usually take it one go, so prepare yourself. If it will be a burden you should let them know.

The guys at work probably assumed you'd get the deduction too. You should see if you can fight it. I'm not sure if you can and/or will win.
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  #71  
Old 04.11.2011, 11:28
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Re: WARNING: hit with a huge tax bill.

UPDATE - Panic Over

The extra tax bill 4289.10 was just INFO, money all ready taken from source tax in year. Google translation not good

I just now need to prove i was a contractor in UK to get the 1500 tax allowance per month when a contractor here in 2009...

Im still to get final bill so maybe i might get a few SF back and be able to
buy, well not very much but something...
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  #72  
Old 05.11.2011, 19:40
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Re: WARNING: hit with a huge tax bill.

I've been separated now for 2 years and next week, will finally be divorced.
Apparently, my tax situation will at last be corrected and I will pay less. Hoorah!! But........

seeing is believing.......
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  #73  
Old 05.11.2011, 20:48
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Re: WARNING: hit with a huge tax bill.

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I've been separated now for 2 years and next week, will finally be divorced.
Apparently, my tax situation will at last be corrected and I will pay less. Hoorah!! But........

seeing is believing.......
Leni, as soon as a couple is legally separated, they are taxed separately.
You shouldn't have been paying as if you were married (if that's what you're saying above).
Do get some advice from a treuhand, your situation can be rectified quickly (let the treuhand do the work, it won't cost too much).

Wishing you all the best.
May the future bring you many happy moments.
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  #74  
Old 05.11.2011, 21:26
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Re: WARNING: hit with a huge tax bill.

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Just didnt expect to pay anymore, they all ready taken about 18,000... Guys at work say they pay about 10-15K a year max...
Well done, shows you earn more than the other guys at work

Personally, I wish I could pay 1 million CHF tax a year.
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  #75  
Old 05.11.2011, 21:30
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Re: WARNING: hit with a huge tax bill.

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I've been separated now for 2 years and next week, will finally be divorced.
Apparently, my tax situation will at last be corrected and I will pay less. Hoorah!! But........
All you do is show the tax authorities the Anmeldebestätigung from the ex, with a letter stating she has a different address because you have separated.

The Anmeldebestätigung is the date you separated, sufficient for tax purposes.

On the year of separation you pay single tax rates - because they use the marital status on 31 December to determine the tax rate.

If you never told the tax man you separated, then the tax man continues to charge at the married rates.
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  #76  
Old 05.11.2011, 21:33
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Re: WARNING: hit with a huge tax bill.

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Do get some advice from a treuhand, your situation can be rectified quickly (let the treuhand do the work, it won't cost too much).
You don't need a treuhand. You go to the tax dept, they compare registered addresses of both married partners, and use that as evidence. Simple (assuming both parties live in Switzerland)

Of course, if the ex left the country and never deregistered, then the tax dept never knew ...
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  #77  
Old 06.11.2011, 14:26
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Re: WARNING: hit with a huge tax bill.

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Leni, as soon as a couple is legally separated, they are taxed separately.
You shouldn't have been paying as if you were married (if that's what you're saying above).
Do get some advice from a treuhand, your situation can be rectified quickly (let the treuhand do the work, it won't cost too much).

Wishing you all the best.
May the future bring you many happy moments.
Thanks, Sky.

We did inform the local authorities that we were separated and have now different addresses, but I still got a large bill. ? Did we have to have some rather more legal proof??

Anyway, my ex has cheered me ip this morning, informing me that I will be elligible for social help now. Yippee.
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  #78  
Old 06.11.2011, 15:01
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Re: WARNING: hit with a huge tax bill.

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We did inform the local authorities that we were separated and have now different addresses, but I still got a large bill. ? Did we have to have some rather more legal proof??
But what is the tax rate shown on the bill? Single, or Married rate?
And what income and wealth figures were used? Are they correct? Or are they the old figures from before the separation?

it is up to you to tell the tax authorities the changes in your situation. If you don't tell them, they use the existing figures on file, which will be wildly wrong.

The correct way to proceed is

a) inform the tax authorities of the separation, they will then put both parties on the single tariff rate

b) in due course, the tax authorities send you a provisional tax return for the current year. You check the figures. If the income and wealth figures are not correct, then you go and visit the tax people, taking whatever documents you need to prove the new figures.

ie: if both spouses worked, and you split the marital assets 50/50, then the provisional tax bill will be made up of your income only (without the income from the ex), any child support you expect to receive, and 50% of the marital wealth.

I know of a couple in this situation. The tax dept correctly put both down as separated. But the provisional return still had the full married couples income. The reality was, the income had dropped by more than half. And once this was corrected with a simple visit to the tax dept, the revised provisional tax bill was generated. The revised tax bill was only 20% of the original bill.

I recommend you go and visit the tax dept.
Tell them what you earn (income, any child support, etc).
Show your latest payslip to backup your claim
Be honest about everything
They will update any provisional tax returns.


Then use a tax consultant for the first tax return after the separation.
You'll be able to claim many items - but you must do it fairly. eg: you claim all your childcare costs paid by you, but if you are splitting some childcare costs with the ex, then the claim needs to be adjusted accordingly.

At the end of the day, you will pay LESS tax as a separated couple, then you paid as a married, living-together couple.

But it's up to you to tell the tax man your changes.
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