Parliament revises revised withholding tax law

The two chambers were still in disagreement as to when the new provisions should apply. The Federal Council had wanted to apply them only to cases where the deadline for objection to the assessment had not yet expired when the law came into force.
However, in the course of the deliberations, both Councils decided on retroactive effect. Initially, the National Council wanted to apply the new regulation to all claims that have arisen since 1 January 2014.

He's come back to that now. He tacitly agreed with the formulation of the Council of States. According to this, claims should only be able to be asserted retroactively for proceedings that have not yet been concluded with legal force.

Generous Parliament

This brings the proposal to a close and it is ready for the final vote. National Councilor Daniela Schneeberger (FDP/BL) had initiated the legislative changes. The councils went beyond the proposal of the Bundesrat.

In short, the parliament wants to generously reimburse the withholding tax. Those who have not declared income in their tax return should still receive the withholding tax back if they have acted negligently.

According to current law, income and assets must have been declared "properly" for the refund of withholding tax. The legislator has not explicitly regulated what is meant by this.

Over the years, the Federal Supreme Court has clarified and tightened the requirement. As of 2014, withholding tax will only be refunded if a subsequent declaration is made spontaneously, i.e. without intervention by the tax authorities.

Maurer warns against abuse

Now the conditions are being relaxed: taxpayers are to be given the opportunity to declare income not negligently declared spontaneously or after intervention by the tax authorities. A subsequent declaration is also possible in an assessment or after-tax procedure that has not yet been legally concluded.

The Federal Council wanted to allow the subsequent declaration only until the expiry of the objection period. In the view of the Federal Council, those who fail to comply with their obligations even when the assessment is being examined accept an incomplete assessment. Thus, the government argued that the non-declaration was no longer negligent, but eventual intentional.

Finance Minister Ueli Maurer warned that with the possibility of a subsequent declaration at a later date, the temptation could arise "to take the chance". The majority in parliament, however, saw things differently.