Swiss law distinguishes between tax evasion, which is sanctioned by administrative fines, and tax fraud, which is a criminal offence. The articles collected here explain that distinction, the penalty-free voluntary disclosure available once in a lifetime to taxpayers who declare undisclosed income and assets, the procedure and the tax and interest that are recovered, and the rules on administrative and mutual assistance with foreign tax authorities. They are written for individuals and companies who need to regularise their tax position in Switzerland or respond to a foreign request.
The automatic exchange of information has made undeclared assets visible to tax authorities around the world. Swiss law allows taxpayers to regularise their position once in their lifetime without a penalty, provided that the authorities do not yet know of the undeclared income and assets.
The penalty-free voluntary disclosure is available once in a lifetime for direct federal, cantonal and communal taxes. The taxpayer must cooperate fully in establishing the amounts and endeavour to pay the back taxes and interest, and the authorities must not yet be aware of the undeclared items. A later disclosure is still possible, although it leads to a reduced penalty and no longer to full exemption.
Swiss law distinguishes tax evasion, which is punished with a fine, from tax fraud, which involves forged or falsified documents and is prosecuted as a criminal offence. The distinction also matters for mutual legal assistance in criminal matters. Back taxes can generally be recovered for up to ten years, which is why a voluntary disclosure usually covers that period and requires careful reconstruction of older records.
Heirs can also regularise assets that the deceased failed to declare. A simplified recovery procedure for heirs limits the back taxes to the last three years before death, with interest, and no penalty is imposed. Holders of crypto assets, offshore companies and trusts should review their filings with particular care, since valuation, beneficial ownership and the attribution of income often raise difficult questions.
The articles explain the difference between tax evasion and tax fraud, the penalty-free voluntary disclosure, the tax and interest that are recovered, and the regularisation of undeclared crypto assets and offshore structures.