Tax return and tax evasion - MKY Group
What is the legal meaning of the tax return? When is there tax evasion if it is “just” an application?
1. Is the tax return just an application?
Yes, formally, the tax return is an application for assessment
In accordance with established practice (cf. circular letters and teaching):
The tax return is not a legally binding decision, but an application by the taxpayer as to how he would like to be assessed.
The tax authority reviews this application and then issues an assessment order — that is the actual administrative act.
2. Still: Wrong information = tax evasion?
Yes — if the application contains false facts, there is tax evasion (DBG 175, StHG 56).
Because: Even if the declaration is “just an application,” the authority trusts the accuracy of the information. That is the key point.
Important distinguishing criterion:
What is being done “wrong”?
Taxpayer provides false information of fact (e.g. (e.g. false place of residence, concealed income, hidden assets)
tax evasion
Taxpayer has declared everything correctly, but the authority makes a mistake or has a different legal opinion
no evasion, possible appeal proceedings
3. The accuracy of the information is decisive
What you say (“as long as the documentation is correct”) is basically correct — but:
The declaration must not only be complete, but also truthful and economically correct.
example:
• You declare a property abroad at its book value even though the market value is known and significantly higher.
• Or: You register a place of residence in Zug but spend 90? % of your time in Zurich — with documentation for both apartments.
Here, the tax authority could say:
“The information was formally documented, but was economically incorrect or misleading. ”
In practice, this would lead to evasion.
4\. What counts as “false information” in the sense of tax evasion?
According to case law and practice:
• Undeclared income/assets
• Place of residence given incorrectly
• Deductions claimed that are not eligible
• Deliberately incomplete information
• Artificial tax avoidance structures without disclosure
Important: The intent may also be intentional (i.e.: “I know it could be wrong, but I accept it”).
conclusion
• Yes, the tax return is formally an application, not a decision.
• But: If you deliberately state incorrect or incomplete facts in the tax return, this will be considered tax evasion.
• Correct documentation only protects if the economic reality has also been correctly represented.
Is it considered evasion if I don't pay the same net salary as on my pay slip? Even if the pay slip is sent along with it?
Situation:
• You will receive a salary statement from your employer.
• There is a clearly stated net salary (or gross wage including any expenses, benefits in kind, etc.).
• In the tax return, you declare a different (lower) wage — even though you also send the salary statement.
Is that tax evasion?
Yes, it does, in principle.
Why
The incorrect transfer of income in the tax return is considered an incorrect statement of fact — even if the salary statement is attached.
The Federal Supreme Court (and the cantonal tax administrations) say mutatis mutandis:
“The tax authority can expect that the tax return has been completed correctly — and that it does not have to search for discrepancies on its own. ”
Legal classification (DBG 175 para. 1):
“Anyone who conceals facts from the assessment authority or provides incomplete or false information is committing tax evasion. ”
This applies even if the evidence (such as the salary statement) is submitted — but is not consistent with the declared figure.
But: There are grey areas. Here are a few steps:
Case 1: Number twister or obvious mistake
Z.? B. instead of CHF 78'450? CHF 87'450 entered
Not an intent, but a possible “computational error”
No evasion, possibly simple additional tax without fines
Case 2: Systematically declared low pay (e.g.? (e.g. CHF 120,000 instead of CHF 160,000)
Intent obvious because the difference is obvious
Classic tax evasion involving fines
Case 3: Correct information, but additional deductions without authorization (e.g. (e.g. excessive professional expenses)
That too can be evasion, depending on the level of knowledge
Differentiated audit by tax authority
Practice of tax administrations
• In case of minor deviations? often notice/request, no penalty
• In case of major or systematic differences? After-tax + fines
• Wage statement is a central document — discrepancy with the tax return is a warning signal
conclusion
Yes, if you intentionally declare a lower wage than in the pay slip, there is tax evasion — even if you send the pay slip.
The tax administration is not obliged to check your receipts, but can rely on the accuracy of the figures declared.
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Disclaimer: The content of this blog post is for informational purposes only and does not constitute professional advice.
Each individual case should be reviewed individually and we recommend that you seek professional advice for specific questions.
