A big tax mess

[Strasz]

So for 2020 I did my first tax forms. Had some medical costs and education costs so was expecting some money to come my way when all was processed.

I went to a professional tax guy and he charged me 140chf, for not a lot of work. I don't own property or a pile of money. We were there for maybe half an hour tops. In the end I got a few thousand back a few months later.

Fast forward to March 2022 and I'm looking at the document provided by my company declaring my earnings etc. They've only gone and written that I had 6 months unpaid holiday in 2020 This was not true and I worked the whole year. Turns out someone had written it in error.

Obviously as a result of that I got significantly less money back than what I was owed. The tax people in the Geminde said they can't do anything about it now.

I know I should have checked the document thoroughly, but my german isn't so advanced, and I certainly haven't reached the level of understanding to follow the tax side of things. With me being such a basic case, I expected that using a professional would be smooth sailing and wasn't expecting such a huge error. Additionally it's not really a document that you can ask a colleague to review as this is all considered very private stuff here.

Is there a next step for me or should I just take this as an expensive lesson?

[zhtubez]

It depends on when you received your final tax assessment. Usually - your mileage may vary - you have a limited time period (often 30 days) within which to object (Einsprache). Thereafter, you are generally out of luck. In some cases you can try and get a revision (i.e. if you discover evidence that you could not have found earlier) but this would not appear the case.

Presumably, the error has led to only half of the usual deductions associated with working being admitted. You should be able to see the impact when comparing the deductions put in and what has been admitted. To then see actual impact you need multiply it with your actual tax rate, i.e. how much additional tax it generated.

You could:

- try to get a revision (doubtful, but check with a tax expert/lawyer first);

- get a refund/compensation from you tax guy on the basis he should have caught this (on the otherhand for CHF 140, he will simply put in the numbers and not verify the accuracy of the documents you provide);

- try to get some compensation from the company which made the error (albeit they can take the position, why did you not look at it and ask us to correct it)

- suck it up.

[Sophien]

Hi,

I know from personal experience that the tax authorities can ask for extra money at least 3 years after a file is closed, so re-opening is possible. In my case impact of re-statement of something historic added to my tax liability.

Key point; they took the view that since it was an error made by a professional who I should have been able to trust they would just ask for the extra tax without any penalties (very fair).

Suggests that there is some benefit to collate the evidence (faulty and corrected docs from your employer) and then discuss with the tax authorities for a "special consideration". Probably "no" is the true answer but doesn't hurt to ask.

The tax authorities in Switzerland have always been more human than any I have dealt with elsewhere.

I would leave your tax preparer out of it though, based on track record.

B

[Buzzer]

What is the real impact in CHF? Presumably it's the lack of possibility to deduct lunch and transport? Or is it something else?

[Strasz]

Yes the impact is all the deductions are not taken into account. Ok it’s not such a lot of money but maybe certainly over 1000chf. For me that’s still very significant.

I received a letter today saying that the kanton tax office will not review as the 30 days has passed. I think I can appeal but I guess the odds aren’t in my favour.

It did occur to me to complain to the company, but the fault lies with HR as I guess they wrote the holiday incorrectly. Not exactly a department I want to get on the wrong side of.

[raceyoel]

Hi

Now, what is your next step? You can try to send them a correct tax declaration.

Cheers

Andreas

[Buzzer]

I get it it's annoying. Did the tax consultant enter the info based on the salary certificate or was the correction made by the tax authorities?

[Strasz]

The correction was made by the tax authorities. So after the fact.

[Strasz]

Thanks for your response Andreas. It seems they are not receptive to it and my only option is to appeal. I got the following letter:

Begründung

Mit E-Mails vom 22. März 2022 resp. 26. März 2022 baten Sie das Gemeindesteueramt GEMINDENAME, die Veranlagung 2020 aufgrund des korrigierten Lohnausweises nochmals zu überprüfen.

Dazu nehmen wir wie folgt Stellung:

Gegen die Veranlagungsverfügung kann der Steuerpflichtige innert 30 Tagen seit der Eröffnung bei der Veranlagungsbehörde schriftlich Einsprache erheben (Art. 132 Abs.1 DBG (Bundesgesetz über die Direkte Bundessteuer)).

Die Einsprachefrist beträgt 30 Tage und beginnt von der gehörigen Zustellung der Veranlagungsverfügung an zu laufen (Art. 132 Abs. 1 DBG). Die Einsprachefrist ist als gesetzliche Frist grundsätzlich nicht erstreckbar. Die Einhaltung der Einsprachefrist ist Gültigkeitsvoraussetzung. Auf eine verspätete Einsprache darf nicht eingetreten werden.

Für die Fristberechnung kommt es nicht auf das Datum der Verfügung an. Massgebend ist jenes der Zustellung (Eröffnung), d.h. das Datum, an dem die Verfügung dem Steuerpflichtigen oder dessen Vertreter in den Briefkasten gelegt oder persönlich übergeben wird. Man zählt für die Fristberechnung aber den Tag, an dem die Verfügung zugestellt wurde, nicht mit. Der Fristbeginn ist der Tag, der auf die Zustellung der Verfügung folgt. Die Einsprache ist rechtzeitig, wen sie am letzten Tag der Frist bei der Veranlagungsbehörde eingeht oder der Post übergeben wird. Benützt der Steuerpflichtige den Postweg, ist der Poststempel massgebend. Fällt der letzte Tag der Frist auf einen Samstag, Sonn-

tag oder staatlich anerkannten Feiertag, so läuft die Einsprachefrist erst um 24 h des nächstfolgenden Werktags ab (Art. 161 StG in Verbindung mit Art. 30 Abs. 1 VRP in Verbindung mit Art. 142 Abs. 3 ZPO sowie Art. 133 Abs. 1 DBG). Die Gerichtsferien gelten nicht (Art. 30 VRP).

Die Steuerveranlagung 2020 ist datiert vom 7. September 2021.

Ihre E-Mails, datiert vom 22. März 2022 resp. 26. März 2022 sind beim Gemeindesteueramt GEMINDENAME verspätet eingegangen.

Im Übrigen weisen wir ausdrücklich darauf hin, dass eine Einsprache per E-Mail oder Fax die gesetzlichen Anforderungen nicht erfüllt.

Zusammenfassend halten wir fest, dass auf Ihre Einsprache infolge abgelaufener Frist gemäss Art. 132 Abs. 1 DBG nicht eingetreten werden kann.

Rechtsmittel

Diesen Einsprache-Entscheid können Sie innert 30 Tagen ab Zustellung mit einer schriftlichen Beschwerde bei der Verwaltungsrekurskommission des Kantons St. Gallen, Unterstrasse 28, 9001 St. Gallen anfechten. In der Beschwerde müssen Sie Ihre Begehren zusammen mit den

begründenden Tatsachen und Beweismitteln angeben. Beweisurkunden sind beizulegen oder genau zu bezeichnen. Der Beschwerde sind dieser Einsprache-Entscheid und die Veranlagungs-berechnung beizulegen.

Ist die Beschwerde unvollständig und handelt es sich nicht um einen versehentlichen formellenFehler (wie .B. fehlende Unterschrift), setzt die Verwaltungsrekurskommission (Gericht) keine Nachfrist zur Ergänzung oder Verbesserung an und tritt auf die Beschwerde nicht ein.

[Jijahmaddi]

I'm not sure I fully understand.

Say you earned 100k in 2020 full time.

Your income statement from the company is only for 50k? or for 100k for half a year? What about the tax at source - did they pay enough? What about your pension statement - have they paid into it?

You're saying you only got half the allowed expenses?

The tax people corrected the dates but not the expenses?

If the error was in the salary certificate then I don't see that it was the fault of the professional who did the taxes although I often hear from people that they expect these things to be spotted. My advisor told me "it's not for me to get it right it's up to you to check it".

Check everything, especially the pension and approach the employer if there's an issue.

[Strasz]

With your example my income was 100k as was my income statement. I paid the Quellensteuer (tax at source) monthly, then because of many additional costs that year I made an additional tax declaration.

Everything seems to have been paid. I can see in my monthly wage statements that I was paid the same each month with deductions for pensions and unemployment insurance etc.

On the Lohnausweis it all looks good but at the bottom is written "Unbezahler Urlaub 1.6.2020 bis 30.11.2020"

In my tax document I received from the Geminde they say I cannot claim such a high amount back as I did not work for those months.

[Buzzer]

Got the situation better now. I gues the question is why you nor your tax accountant noticed the discrepancy when you go the documents from the Gemeinde back?

I don't think you will get the money back at this point but I also don't think your tax accountant is completely free of fault

For the future, what I do is always immediately ask for an extension to the 30 days when I receive the declaration as I know life gets in the way and this gives you more time to review all the details.

If I were you I would ask again nicely and blame it on the fact that it's your first declaration and that a lot of mistakes were made by people you trusted and could they please just for this once reconsider and that in the future you will of course respect all deadlines. If the sum of money is high enough it's worth a try via a nice letter.

[raceyoel]

Rechtsmittel

Diesen Einsprache-Entscheid können Sie innert 30 Tagen ab Zustellung mit einer schriftlichen Beschwerde bei der Verwaltungsrekurskommission des Kantons St. Gallen, Unterstrasse 28, 9001 St. Gallen anfechten. In der Beschwerde müssen Sie Ihre Begehren zusammen mit den

begründenden Tatsachen und Beweismitteln angeben. Beweisurkunden sind beizulegen oder genau zu bezeichnen. Der Beschwerde sind dieser Einsprache-Entscheid und die Veranlagungs-berechnung beizulegen.

This is the way.

Andreas

[OakbrookIL]

Can you please add a translation? Thanks

[Buzzer]

Not really relevant since he missed the 30 days to appeal... It's now down to goodwill and yes one would assume he would send the docs needed.

[Jijahmaddi]

I would guess he'd need testimony from the employer also. This is not an error on the side on the tax authorities but rather a factually incorrect document. If the salary amount was also half they certainly would be interested.

All the tax professional does is put the numbers on the form from the documents given. Part of the form asks for the start and end date of employment. I suppose it was entered as a full year. Seems the tax office wrote to say that they 'corrected' it to a half year. Then you've been made aware and have (had) the opportunity to appeal already. If there was no commuincation like that then you might have a chance albeit a slim one.

[Buzzer]

The OP said the tax authorities corrected the amounts so the tax accountant made a mistake as he should have picked up that sentence in the salary declaration and only deduct half of the work deductions.

OP has the updated document from employer so it's easy to show the issue.

Hopefully with a nicely worded letter it gets better

[Jijahmaddi]

Corrected in which way? Tax guy put say 100k 100% and the tax authorities 'corrected' it to 100k 50% thus halving the expenses, is the way I see it but it's not clear.

[Buzzer]

I have understood that salary was declared as 100 (example) and work related deductions were put in in full. Then tax authority noticed that person had only worked 6 months and reduced the deductions. This correction was communicated to OP but OP missed the deadline to challenge. Hence OP ended up paying more taxes.

OP can you confirm?

[Strasz]

Yeah that's exactly it.

I did get a letter from my company saying they made an error in the original Lohnausweis and I passed it to the tax people in March. So the response given is already based on them seeing this explanation letter from company.

So as I don't have anything new to add to the appeal I wonder if it is worth going through with it. I plan to say that it was my first tax return, I trusted a professional and my company (who employ thousands of people), and my German is still limited, but whether that would be enough... probably not.

I don't have a solid reason for the delay in appeal, which is the crux of the issue now. It just didn't really occur to me that there could be something wrong like that.