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Old 04.12.2012, 11:24
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Foreign Property - Tax implications

Hello- my friend forgot to declare a foreign property he co-owns on his swiss tax (financed via a mortgage) return.

If he now declared it, does anyone know what would be the Swiss tax implications?

thanks for any info
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Old 04.12.2012, 11:27
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Re: Foreign Property - Tax implications

AFAIK not much - just a wealth tax adjustment which isn't very big.

(I mean, if he has a property abroad he forgot about, it won't be very big to him/her )
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Old 04.12.2012, 13:23
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Re: Foreign Property - Tax implications

Did he declare the mortgage on it as part of his debt?
Usually one will offset the other and he may even end up better off if the mortgage is substantial.

I don't think he'll have to pay much in any case unless it's some kind of palace but that's not usually the kind of place you forget about.
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Old 04.12.2012, 15:50
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Re: Foreign Property - Tax implications

cheers for the info
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Old 04.12.2012, 16:08
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Re: Foreign Property - Tax implications

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Did he declare the mortgage on it as part of his debt?
Usually one will offset the other and he may even end up better off if the mortgage is substantial.

I don't think he'll have to pay much in any case unless it's some kind of palace but that's not usually the kind of place you forget about.
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Old 04.12.2012, 16:56
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Re: Foreign Property - Tax implications

good info!
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Old 04.12.2012, 17:01
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Re: Foreign Property - Tax implications

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AFAIK not much - just a wealth tax adjustment which isn't very big.

(I mean, if he has a property abroad he forgot about, it won't be very big to him/her )
Yein.

If the tax authorities decide to take him to task over it, the implications would be a punitive fine due to tax evasion and tax audit over the past 10 years... don't ask how I know, I just do... OK?

If you willingly declare it and submit 10 years of returns, you will be let off with just a requirement to pay back-taxes (if any are owed). Funnily - or not - enough if they owe you money, they don't pay that back.

Any good tax lawyer should be able to advise on this.

How long has this property been ah... emm... gathering dust and if only recent, where did the money come from?
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Old 04.12.2012, 19:56
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Re: Foreign Property - Tax implications

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Yein.

If the tax authorities decide to take him to task over it, the implications would be a punitive fine due to tax evasion and tax audit over the past 10 years... don't ask how I know, I just do... OK?

If you willingly declare it and submit 10 years of returns, you will be let off with just a requirement to pay back-taxes (if any are owed). Funnily - or not - enough if they owe you money, they don't pay that back.

Any good tax lawyer should be able to advise on this.

How long has this property been ah... emm... gathering dust and if only recent, where did the money come from?
My understanding though is that if you report it yourself they are far more lenient than if they find you out. IIRC on my tax form these past years there has been a place to declare things that I may have "forgotten" in previous years. This article says that they won't fine you but will charge you interest on the tax owed:

http://www.nzz.ch/aktuell/wirtschaft...weiz-1.4924348
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Old 04.12.2012, 20:30
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Re: Foreign Property - Tax implications

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Yein.

If the tax authorities decide to take him to task over it, the implications would be a punitive fine due to tax evasion and tax audit over the past 10 years... don't ask how I know, I just do... OK?

If you willingly declare it and submit 10 years of returns, you will be let off with just a requirement to pay back-taxes (if any are owed). Funnily - or not - enough if they owe you money, they don't pay that back.

Any good tax lawyer should be able to advise on this.

How long has this property been ah... emm... gathering dust and if only recent, where did the money come from?
don't be shy. do share the details and level of punitive fines...
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Old 05.12.2012, 09:02
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Re: Foreign Property - Tax implications

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My understanding though is that if you report it yourself they are far more lenient than if they find you out. IIRC on my tax form these past years there has been a place to declare things that I may have "forgotten" in previous years. This article says that they won't fine you but will charge you interest on the tax owed:

http://www.nzz.ch/aktuell/wirtschaft...weiz-1.4924348
Indeed they are, but you still have to declare under some 10-year amnesty thing, where they ask you for 10 years of records. It is just that you don't get fined. An issue if you have UK banking records which only last 7 years.

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don't be shy. do share the details and level of punitive fines...
We had none. Only had to pay back taxes. I believe if you look hard enough you'll find details on EF already
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Old 05.12.2012, 16:03
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Re: Foreign Property - Tax implications

My friend didnt realise / overlooked he had to declare foreign assets.......his tax advisor said it shouldnt matter too much, we're not talking millions
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