Wrong tax declaration for 2019 will be tax evasion? – Taxes

Hello Mustachians,
I probably need some tax and legal advice related to a “wrong” tax declaration for 2019. Below the full story.

Back on November 2019 I moved to Switzerland from my home country, the tax declaration for the 2019 only contained the details of my income, and I did not move to Switzerland my previously earned money and a donation from parents (>400k). The main reason is that I was not sure to stay in Switzerland and my job was temporary as well as the permit.

On 2020 I planned (and can) to stay in Switzerland for longer time, so I move all my money (>400k) in my Swiss broker and (of course) I declared everything at then end of the year.

Now the situation is this:

• declaration for 2019 with net wealth
• declaration for 2020 with net wealth >500k

On 2022 I got some complaints from the tax office asking if this increase of wealth comes from a side job or money laundry, and I was able to explain that I moved my money on 2020 with wire transfer (SEPA) and all came from my personal bank account in my home country. Everything seems solved until now that I received a clarification request for the declaration of 2019 from the Kantonale Verwaltung.

Although I already paid the source wealth tax in my home country for 2019 (probably in my home country is more expensive than the wealth tax in Switzerland), and despite my living in Switzerland on 2019 was about 2 months, this is technically tax evasion and potentially criminal offense.

Did you have any experience of moving to Switzerland and missed to declare something in the first year?
I was tax resident outside Switzerland for 10 months in 2019, is it correct that I have to pay the taxes for the wealth and declare it?
Should I get a lawyer to handle this issue? And what kind of lawyer?

Why wouldn’t you have to declare it? (It will be pro rated for the time you were resident)

I’d probably try to tell them you made a mistake, most likely they’ll make you pay the difference with a penalty but it’s unlikely to escalate further. (But don’t make further mistakes)

A lawyer will likely cost more than that for the same result.

Unless there’s clear fraud I don’t think it’s a criminal offense (unlike some other countries). Eg Steuerstrafverfahren und Bussen for Bern but I assume similar for other cantons.

If they 400k belonged to you by 31 December 2019, then it should have been declared in the 2019 tax return and wealth tax paid on it.

I think best would be to call the Tax office and try to explain the situation. The wealth tax on 400K is important but not that huge. It’s not like you avoid million dollar tax.

The issue is that in your 2020 return you are more or less saying that you transferred this money from your account. But in 2019, this money was not shown in your accounts.

I think the main thing they need to understand is where this 400K came from. That’s the main point. Remember in some cases, such a donation could be considered as taxable event. For example if your sibling gave this money, this would be taxed at a specific rate depending on canton.

However, in your case, it came from your family. Just explain it to them.

If you feel worried, then perhaps ask a tax consultant for an official advise. People here wouldn’t really know the legal details. Comments will be based on perceptions

Tax evasion is tax evasion, it doesn’t matter how much. In some cantons we are already at a few thousand francs in taxes.