Penalty-free voluntary disclosure and simplified taxation of heirs - Part 2: Which taxes are affected?

In recent years, especially since the financial crisis of 2007/2008, there has been a concerted effort to combat tax fraud and tax evasion. The focus is not only on preventing future tax offenses. In Switzerland, the penalty-free voluntary disclosure and the simplified tax adjustment for heirs create an incentive to regularize previously undeclared income and assets. Findea explains these concepts in a four-part series of articles. In this second post, it is explained for which types of taxes these options are available.

As explained in the first post, the penalty-free voluntary disclosure and simplified tax adjustment for heirs are intended to encourage individuals to disclose undeclared income and assets and to inform the authorities themselves.

The penal provisions relating to taxes belong to what is called secondary criminal law. To identify which types of taxes are affected by these regulations, one must look at the laws in which they are governed. The penalty-free voluntary disclosure and simplified tax adjustment for heirs are embedded in the Federal Act on Direct Federal Taxation (DBG) and in the Federal Act on the Harmonization of Direct Taxes of the Cantons and Municipalities (StHG). Therefore, the penalty-free voluntary disclosure and simplified tax adjustment for heirs can only apply to direct federal tax and to the income and wealth taxes of the cantons and municipalities.

For the remaining taxes and also social charges (e.g., value-added tax, withholding tax, or AHV contributions), the penalty-free voluntary disclosure and simplified tax adjustment for heirs are excluded. For these taxes, the taxes or contributions remain due in full, plus interest on arrears.

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