Withholding Tax Act: Federal Court protects taxpayers
At the beginning of 2019, the Withholding Tax Act came into force, which contains significant improvements for taxpayers. Thanks to several rulings made by the Federal Supreme Court in favor of taxpayers in the current year, the motion is now bearing its first fruit.
In recent years, the withholding tax had become an actual punitive tax. Taxpayers were already being punished excessively harshly for negligent omissions. To remedy the situation, National Councilor Daniela Schneeberger, who is also president of the industry association Treuhand Suisse, submitted a motion in 2016 entitled "No forfeiture for withholding tax". Her demands were included in the revision of the law.
Withholding tax can be reclaimed for longer
The new Withholding Tax Act has been in force since January 1, 2019. Since then, taxpayers may also reclaim withholding tax retrospectively, provided the income or assets were not intentionally concealed. The new regulation applies retroactively to claims that have arisen since January 1, 2014, provided that a legally binding decision has not yet been made on them. Anyone who has missed the deadline for refunding withholding tax due to an error can therefore breathe a sigh of relief.
First federal court rulings in favor of taxpayers
In the course of this year, the first Federal Court rulings have now already been issued in favor of taxpayers. The Federal Supreme Court states that withholding tax can also be reclaimed if taxpayers have violated a procedural obligation, but the taxpayer cannot be accused of either intent or negligence. "It can happen to any of us to forget to reclaim withholding tax," Daniela Schneeberger knows. "Especially in the case of SMEs, it can happen that an 'error' creeps into the declaration because the tax authority has only corrected the valuation of the company's assets after the fact." Losing a third of the asset income because of such an omission is a completely unreasonable penalty, he said. "The new provision in the bill is fair and in line with common sense," Daniela Schneeberger affirms.
Source: Fiduciary Suisse
