I had made a mistake in my 2020 returns. While the interest and income earned were all correctly specified (with interest certificates), I missed to specify two savings accounts, holding around 100k CHF in total in my assets declaration for the wealth tax.
The 2020 returns were though processed by the Zurich tax authorities.
For 2021 returns I had specified all the accounts. I received recently a query to explain the difference of around the same amount.
Can I simply own up to my inadvertent mistake in filling the 2020 returns and provide the statements of the accounts I missed to specify for that year ?
What will be the consequences ? - I guess i will be taxed retrospectively which is fair but will there also be a significant penalty I will be paying ?
Any feedback will be welcome. Thank you!
I don’t really see another option, they know about the discrepancy.
You can either explain to them directly (if it’s a mistake I’d assume some leniency, the fact you added it to the 2021 report speaks in your favor), or get legal help (probably not worth it, likely more expensive than missing tax even incl. potential fine). Wealth tax is a few hundreds at most.
FWIW I suspect they’d be more interested in undeclared income (tax on income of 100k would be significant, many thousand CHF), and that’s probably what they might be checking.
Thanks. the income is my salary - no other source, barring few hundreds of interest. The interest statements of these accounts was also attached in the 2020 return so they can see it was a genuine error on my part.
I am mostly worried about the potential fine, hopefully its not too significant
Well, you don’t really have another choice. Call them and explain the situation as soon as possible. What is indeed more important, is to declare income.
I know there is usually an “amnesty” on previously undeclared assets possible. There are stories like this usually about previously undeclared crypto.
P.S Oh I have a terrible thought…
IIRC from my one tax law lecture I took (I’d appreciate others correcting me) then the fine in tax issues is usually capped at 3x the amount you cheated the tax office out of - so for 100k in undeclared wealth the top fine would (assuming 0.25% wealth tax) be 500 CHF (max you pay 3x 0.25% of 100k, 1x of which you’d have had to pay anyways). But given that it’s almost obviously an error on your side (you say you even included the interest statements) I wouldn’t expect more than a symbolic fine.
Thank you all. Appreciate the advice !