retroactive interest taxation
March 22, 2012 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
The interest of a bond held in Switzerland (Inter Renta) from 2009 is to be taxed retrospectively (flat-rate tax or voluntary disclosure). For this purpose, the interest income must be determined.
1. Example: Dividend gross amount 705.00
EU tax withholding 20% -111.00
Expenses commission - 17.63
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Net amount 576.37
Should the gross or net amount be reported to the German tax office? Can additional costs be deducted?
2. Is the appreciation of the fund (purchased in 2002) taxable?
3. Is the withholding tax withheld in Switzerland taken into account in Germany?
4. Are the undeclared interest income from the last 5 or 10 years subject to retrospective taxation?
Dear client,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation for an initial consultation as follows:
You must report the gross income amounting to €705 in your tax return and can offset the EU tax withheld against German income tax in return.
In total, you can deduct an allowance for savings income of €801 for all capital income, and through joint assessment, €1,602 can be tax deductible. Another deduction for advertising costs is excluded.
Income from the fund is also taxable for undistributed (accumulated) profits. The income is used here to increase the fund's assets.
According to § 169 of the Tax Code (AO), the statute of limitations for the assessment, cancellation, or amendment of tax assessments is 10 years in the case of tax evasion, and 5 years if it has been negligently reduced. Unfortunately, I cannot determine from a distance whether the conditions for tax evasion or negligent tax reduction are met.
I hope I was able to assist you.
Best regards,
Ulrich Stiller
Tax Advisor/Diploma in Business Administration
