Practical questions due to the withholding tax revision from the employee's point of view

Case 1: Change of tax liability and effects according to KS 35

1. facts of the case

Ms U works for Y AG in Domat/Ems (Graubünden) and lives in Stäfa (Zurich). She is single, has a B permit and lives alone in her rented 3.5 room flat. Her annual salary amounts to approximately CHF100,000.

In 2022, Mrs U buys into Pillar 3a. She also finds her partner in Y. He lives in Bludenz (Austria). He lives in Bludenz (Austria), which is why U decides to move closer to him and to her place of work. She finds a nice flat in Mels (St. Gallen) on 1 April 2022. The relationship quickly strengthens and U decides to move to Bludenz. However, she does not quit her job at Y AG and therefore works as a cross-border commuter in Domat/Ems from 1 November 2022.

Questions

• Which tax obligations will be created in Switzerland per 2022?
• Does Z qualify for a retrospective ordinary assessment?
• If a subsequent ordinary assessment is made, which canton is responsible?

Case 2: NOV ex officio due to objectionable conditions

1. facts of the case

Ms D lives in Stockholm (Sweden) with her partner. She works for company Z in Stans (Nidwalden) as an engineer. During her time in Switzerland, she stays in a rented flat in Erstfeld (Uri) and also flies to Stockholm every other weekend. Her annual earnings are CHF90,000.

Due to her young age, the savings portion in MsD's pension fund is 7% and she is only insured according to BVG compulsory insurance.

The tax rate of the municipality of Erstfeld is 103%, while a weighted municipal tax rate of 101% is included in the withholding tax procedure.

Question

• If Ms D does not apply for an NOV of her own accord, can the canton of Uri carry out an NOV ex officio?

Case 3: NOV ex officio due to objectionable conditions

1. facts of the case

Mrs W is a French and Swiss citizen and lives with her husband and two minor children in their own home in Saint-Louis (F). Mrs W is a practising rheumatologist and runs a practice in Oftringen (Canton Aargau). In addition, she lectures at a university in France and gives individual practical lectures at a university in Switzerland. Her husband also works in the medical sector for company A and works in Basel. The couple also own a condominium in Basel, which is rented out.

In 2022, Mrs W earns a net profit of CHF 160,000 from her practice, the chair in France is compensated with CHF 80,000 and the lecturing activities in Switzerland with CHF 10,000. Her husband earns CHF 175,000.The rental income in Basel amounts to CHF 25,000.

Questions

• What tax obligations are created in Switzerland?
• Do the spouses qualify for a retrospective ordinary assessment?
• If a subsequent ordinary assessment is made, which canton is responsible?
• What correction options are open to the spouses if no subsequent ordinary assessment is carried out?

Case 4: Maintenance contributions

1. facts of the case

Mrs Q lives separately from her husband and pays maintenance contributions to him and for the two minor children. She lives alone in her condominium in Erlenbach (Zurich).

The maintenance contributions for the husband amount to CHF 30,000 p.a., for the two children to CHF 20,000 p.a. each.

Mrs Q earns CHF 400,000 per year.

She turns to the Cantonal Tax Office Zurich and asks for the granting of child deductions in accordance with paragraph 4.9 of the FTA circular no. 45.

Question

• Can Ms Q's request be granted?