The issues of tax evasion and tax fraud are of great social and legal importance in many countries, including Switzerland. Taxes are an essential source of revenue for governments, which use them to fund public services and infrastructure. Proper compliance with tax laws is therefore crucial to ensure the stability and functioning of a society. Tax evasion and fraud pose a threat to this system.
Tax evasion:
Tax evasion generally refers to the attempt to avoid or reduce taxes by concealing information from the tax authorities. This is done primarily by hiding or not declaring money and assets. As a result, taxable income and assets are reduced, which means tax liability also falls.
Consequences:
The penalty depends on several factors, including the amount of tax evaded and the severity of the tax violation. The taxpayer must pay the evaded taxes in arrears, this may involve significant financial burdens, in addition to the taxes may also accrue interest.
Tax fraud:
Tax fraud refers to intentional acts of providing false or misleading information to tax authorities in order to evade taxes. This can be done, for example, by falsifying documents, concealing income, or fabricating transactions. The main difference with tax evasion is that one intentionally deceives the tax administration and submits false documents that are not truthful.
Consequences:
Again, the penalty depends on the amount of tax evaded and the severity of the violation of tax laws. However, the penalties can be much worse than those for evasion. There may even be a custodial sentence.
Accidentally evaded taxes?
Have you noticed that you mistakenly failed to pay tax on a bank account or a small income? Don't worry, you can file a voluntary declaration with your tax office, which will eliminate the penalty. However, the evaded taxes and the evasion interest must be paid within a certain reasonable period of time.
