i’ve had them go back several years when canton disagreed with how gemeinde had treated something (which as far as the gemeinde and i were concerned was already agreed, settled and paid). so yes.
i’m not sure what the limits are in switzerland, but typically tax authorities have something like a 6 year window to review tax returns and even longer in case of fraud/negligence.
Just for technicalities, the authorities don’t actively classify you as non-professional trader. Every natural person in treated as non-professional trader. The only active act is to classify you as active trader.
In theory, everything is possible, so the answer is definitely yes. But I think you are trying to understand the actual probability of such an action and how often such retroactive classifications happen.
Since the classification of a professional trader is very rare already, a retroactive classification change is ever rarer.
Here’s what I mean:
The tax authority reviewed Mr. Meier’s tax return for the year 2024 and classified him as a non-professional securities trader.
Once this review is complete and finalized, can the tax authority still come back a year later and reverse this classification, even though the person did not provide any false information—in other words, did not commit fraud?
I thought that if the tax authority has legally classified someone as a non-professional securities trader for the year 2024, then the tax authority can no longer retroactively change this for the year 2024.
I think I understand one part of the problem now.
You’re trying to understand a system that works differently than the one you are used to while thinking it works the same way, which can be frustrating.
Good on you for trying to understand it.
So if you find a common basis in the answers that you disagree with or that frustrate you, it’s maybe because the system works differently.
I think they do not classify you as non professional trader, I believe there is only a active classification process for the „professional trader" part.
In CH authorities have under certain circumstances the possibility to adjust a earlier decision, yes. I think the timeframe is 5 years. That means if you make your statements 100%correctly, tax officer oversees something (his fault) they can still come back to that for a certain amount of time.
As you described in earlier posts there is some money at stake. Did you already consult a professional in swiss taxation? I am certain for you situation this would be money well spend.
What @newhere said.
And if you’re unhappy about it, keep in mind my previous post.
I don’t live in Switzerland yet.
Let’s take the canton of Schwyz as an example.
When you fill in your tax return in Switzerland, are you asked on the form how many trades you made that year?
Is it the same in the cantons of Nidwalden and Zug as it is in Schwyz?
No
You’re not even asked to call out eg amount of option premiums received
However, in my case, i have been expexted to attach a very detailed tax report which my bank provides for free to me (as part of the fees i pay) and if they wanted to they could (and probably do - if you have substantial holdings) go through it in detail.
I’ve done returns in Schwyz in the past and now Nidwalden.
Thank you.
Does the tax return ask how much profit you made from securities during the year?
For sure i have had to indicate income on the tax return (dividends) but the banks tax report contains much more metrics
the share price gains are simply reflected under assets on tax return and match the bank report - these are not taxed as income but as wealth
That means the tax authorities will find out, after all, how many trades you’ve made in a year.
Is it common for the tax authorities to require you to submit a very detailed tax return?
So far, I just filed my declaration as per the end of the year. I have never been asked for anything more.
I have my tax return prepared by a tax consulting firm and they have always insisted on providing thr detailed bank report as an appendix because they know the tax return will demand it anyway
Yes, it contains all trades
Thanks.
I don’t know much about that.
Does that mean you have to declare the capital gains on shares for every year in your tax return?
I don’t mean dividends or interest.
It may depend on the assets involved in the return but am surprised you’ve not had to provide supporting matetials
even with my lenghty bank report, i have once or twice been requested to provide additional details
There is a separate specialized department (at least in nidwalden) at the tax authoority which reviews the shares etc part of your return if substantial
Yes
But not so much as a gain, just as total assets (the bank report will likely also show the gain)
The tax department will look at how bog the gain is anyway as they will check whether it is realstic for assets to increase relative to your income that year
Thank you.
Do you have any experience of whether one is quickly classified as a professional securities trader in Nidwalden, for example when trading futures?
Some cantons are not so quick to classify you as a professional securities trader, for example the canton of Zurich.
What is the situation in Nidwalden?
If your wealth increase isn’t explainable from your stock position and declared income, I’d expect them to ask questions.
In general
But that means you don’t have to declare capital gains from shares on your tax return.
That’s how I understood it.