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Old 27.07.2017, 14:13
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UK bank accounts - declare in CH

Dear all

I still have UK bank accounts which I use when I'm back home on holiday. It's mainly money I'd saved before moving to CH and has been filling up with birthday money etc.
I've always paid tax on the interest in the UK but never declared it in Switzerland. I've always seen it as money I've "earnt" in the UK, spend in the UK and therefore completely seperate from CH.

However, now I'm wondering if I've been breaking the law! Can anyone suggest a relaible tax advisor? Or have any experience of something similar.
I'm a bit nervous of ringing up the Swiss tax authorities in case I get myself in a lot of trouble.


Cheers
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  #2  
Old 27.07.2017, 14:17
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Re: UK bank accounts - declare in CH

Wrong, you need to declare your worldwide income and assets.

Not a big issue though, just declare it and if you want, give your tax office a call and tell them you innocently thought there was no need to declare. Happened to me and it was no issue at all.

Unless you have millions on that account, it won´t make much of a difference to your tax declaration.
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Old 27.07.2017, 14:19
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Re: UK bank accounts - declare in CH

Are you resident in CH? If so, you must declare your worldwide assets.

However, wealth tax is relatively insignificant, so unless you have huge sums of money on those accounts (which I assume you don't have, otherwise you would have a tax advisor already), the wealth tax component is not going to hurt you much.

It's really not worth breaking the law for such a small sum. You can even do a test tax form online and see how much difference it makes, just don't press submit.

I would just declare it from your next tax declaration. Also, the tax authorities here are friendly and the people who work there are mostly on your side. I cannot imagine they would report or denounce you just for approaching them with an honest question.
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Old 27.07.2017, 14:27
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Re: UK bank accounts - declare in CH

There is a tax law in Switzerland that once in your life you can own up to making false tax declarations and then you just pay the tax you should have paid; no penalties or extra charges except for interest on the late payments.
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Old 27.07.2017, 14:34
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Re: UK bank accounts - declare in CH

Thanks for all your quick replies.

I shall get in contact with my tax office.

Cheers
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Old 27.07.2017, 15:09
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Re: UK bank accounts - declare in CH

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There is a tax law in Switzerland that once in your life you can own up to making false tax declarations and then you just pay the tax you should have paid; no penalties or extra charges except for interest on the late payments.
Any idea how to go about making such a declaration?
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Old 27.07.2017, 15:23
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Re: UK bank accounts - declare in CH

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Any idea how to go about making such a declaration?
As you live in the Kanton Zurich here all the details:
You just list all the stuff you missed to declare and sent it to the mentioned address and wait for the bill.
https://www.steueramt.zh.ch/content/...ter/38-200.pdf

Other cantons have similar procedures.
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Old 27.07.2017, 15:23
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Re: UK bank accounts - declare in CH

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Any idea how to go about making such a declaration?
Call up the tax office in the local Gemeinde and say you want to make a declaration and then they will guide you through the process, sometimes they handle it themselves sometimes they tell you to write to the Kantonal tax office.

Usually they are friendly and helpful, important to say it was simply a mistake due to your lack of knowledge of Swiss tax law not a deliberate attempt to avoid tax!
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Old 27.07.2017, 15:48
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Re: UK bank accounts - declare in CH

Do tell the Swiss that you paid tax on the interest in the UK. You might get some credit.

Do tell your UK bank(s) that you're overseas now, and ask for the form (can't remember what it is) to have your interest paid without tax being deducted.
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Old 27.07.2017, 20:52
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Re: UK bank accounts - declare in CH

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Do tell the Swiss that you paid tax on the interest in the UK. You might get some credit.

Do tell your UK bank(s) that you're overseas now, and ask for the form (can't remember what it is) to have your interest paid without tax being deducted.
UK Bank interest is paid Gross without tax deducted
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Old 28.07.2017, 16:00
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Re: UK bank accounts - declare in CH

UK is part of the OECD automatic exchange of information and from January 2019 is Switzerland joining it too (AIA). Meaning that the Swiss tax office will receive the information of you foreign assets and that might have consequences. Verse vise UK and all other participating countries will receive information from Swiss banks.

Acting proactively is surely wise and might still be treated as unpunished voluntary declaration (straflose Selbstanzeige).


http://www.oecd.org/tax/transparency...ommitments.pdf

Last edited by Tiiwa; 28.07.2017 at 16:01. Reason: adding the link source
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Old 29.07.2017, 00:32
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Re: UK bank accounts - declare in CH

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UK is part of the OECD automatic exchange of information and from January 2019 is Switzerland joining it too (AIA). Meaning that the Swiss tax office will receive the information of you foreign assets and that might have consequences. Verse vise UK and all other participating countries will receive information from Swiss banks.

Acting proactively is surely wise and might still be treated as unpunished voluntary declaration (straflose Selbstanzeige).


http://www.oecd.org/tax/transparency...ommitments.pdf
The details are markedly different:
Switzerland will share its data starting next year, January 2018. Do note that the first exchange will be on data collected throughout and pertaining to this year. This applies to all EU including the UK.

So the last year to make use of the "straflose Selbstanzeige" is this year. Once the data have been exchanged the tax office knows about the issue, as a consequence the "straflose Selbstanzeige"is no longer possible.
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Old 29.07.2017, 00:41
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Re: UK bank accounts - declare in CH

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The details are markedly different:
Switzerland will share its data starting next year, January 2018. Do note that the first exchange will be on data collected throughout and pertaining to this year. This applies to all EU including the UK.
So far as I understand details of Bank accounts closed before a certain date (2018?) will not be shared!
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Old 29.07.2017, 07:47
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Re: UK bank accounts - declare in CH

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UK Bank interest is paid Gross without tax deducted
Oh yes. It changed in 2016. Missed that. http://www.moneysavingexpert.com/sav...ings-allowance
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Old 29.07.2017, 09:06
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Re: UK bank accounts - declare in CH

If you need professional help, I can recommend the Treuhand below, although I've not had the bill yet



http://www.aurora-treuhand.ch/
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