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Old 03.01.2008, 11:58
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End of the 'expat' benefits ??

My 2004 tax return was challenged by the nice folks in the Zurich steuer department, on what I felt were very flimsy grounds. I was treated as an 'expat' for 2002 and 2003, and was allowed to deduct the cost of international school from taxable income on that basis. Out of the blue, last year (2006), they decided that back in 2004 I was not eligible for the benefit because my 2002 contract was 'open ended'.

I hired a lawyer and challenged them at the rekurskommission. The kommission have just come back with a decision, and have not only allowed the tax dept to retroactively charge me higher tax, but also said that the whole regulation allowing benefits to expats was illegal and therefore not to be applied (to anyone, I presume)

I am pissed off to say the least... but also left wondering, how can it be legal for them to go back in time and change the law on me ???

Has anyone else been affected by this whimsical change?

I would fight them further, but Swiss lawyers don't come cheap; so even though I am convinced I am not at fault, I will have to give in and just hand over a chunk of my hard earned savings...
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expat tax allowances

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