Tax deduction

Case 1: Tax remission

1. facts of the case

Peter is 44 years old, married, has two children, A (9 years old) and B (11 years old) and has been living in Winterthur for 10 years in a rented flat for Fr. 2,500 per month. There are no assets.

In 2018, he earned well in investment banking, from which he still owes the Confederation Fr. 40,000. Then he enjoyed life to the fullest and spent his money on cars, watches and holidays.

At the beginning of 2019, he lost his job after a burnout. Thanks to psychological support, he was able to start a new job in the company of a friend at the end of 2019. There he earns CHF 90,000 net per year. His professional expenses amount to CHF 400 per month. The health insurance premiums for the whole family amount to CHF 1,500 per month (KVG CHF 1,000, VVG CHF 500).

As he does not know how to pay the tax debt, he applies for a tax remission.

Question

Is the application for remission approved?

Variant 1

Assumption: Peter's plight is given.

variant 2

The hardship is given and Peter had no possibility to build up reserves. However, Peter has a current mortgage and several small loans.

Variant 3

Peter has already paid back his small loans in the last two years, as the high interest rates hurt him a lot.

Variant 4

Peter was assessed discretionary (too high) in 2018 because he did not file the tax return.

Variant 5

Peter owes the federal government back taxes and fines of over CHF 200,000.

Variant 6

The payment order has already been served for the 2018 tax period.

Case 2: Gold and silver

1. facts of the case

Pius, who lives in Bülach, has a preference for precious metals and invested the money entrusted to him professionally in gold and silver. While the prices peaked in 2013 and enormous profits were made, the prices dropped significantly the following year.

However, Pius did not set aside any reserves for taxes incurred during the good business years, as he firmly trusted that share prices would continue to rise in the future.

After the share price collapses, there are outstanding tax claims of more than Fr. 1,200,000.

Pius has liquid assets of Fr. 350,000 in accounts, securities with the Liechtensteinische Landesbank for Fr. 50,000 and a holiday home in Braunwald worth Fr. 100,000. One account is with the Berner Kantonalbank and one with UBS in Andelfingen.

The taxes have not yet been legally assessed or are in the process of being appealed to the tax commissioner.

Question

How does the tax office get the money?

Variant 1

Pius' place of residence is abroad. What changes?

variant 2

The taxes are already legally assessed at the time of arrest. What changes?

Case 3: Paul and Pauliana

1. facts of the case

Paul, 58 years old, married, has two children A (22 years old) and B (24 years old). He lives in Zurich with his wife and children. In Zofingen, he was able to purchase an old detached house 6 years ago. The appraised value since 2017 is Fr. 900'000.-, the mortgage is Fr. 600'000.-.

Paul was not always so meticulous about filling out his tax return. In 2017, this led to back-tax and fine proceedings, as a result of which he owes the state back-tax and fines of over CHF 150,000.

The debt collection was initiated and the attachment took place on 31 July 2019.

The tax withdrawal ended on 1 October 2019 with a loss certificate.

As early as 28 January 2019, Paul transferred the property to A and B for Fr. 600,000. The latter took over the mortgage in return. The purchase price was thus deemed to have been paid.

On 1 December 2019, the children transferred the property again for CHF 600,000 to Z, a distant acquaintance of Paul. For his part, Z took over the mortgage, with which the purchase price was deemed to have been paid.