Lotto Winnings Taxation

Finance, Taxes, Banking, Insurance and Retirement
1

I found a useful tax saving tip albeit one which will probably not apply to many people here.

If you make a huge win on the Lotto here during a tax year you may be able to save a considerable amount of tax by moving to lower tax region before the end of the year. There is a tale of a Solothurner last year winning CHF 68 million last year and moving to a different community in the same canton for a considerable tax saving (around CHF 2 million).

There is another tale of a Thurgauer in 2015 and tried the same trick but on the cheap. He simply rented a room in a shared apartment in the canton Schwyz and claimed to have moved there. This arrangement was viewed as unconvincing even up to the Bundesgericht so ultimately failed.

It is in the news now because there is a movement to make Lotto winnings taxable based on the tax location of the winner at the point of the win and not the year end.

This comes close to the article I read and does not appear to be behind a paywall: https://www.blick.ch/politik/steuerflucht-soll-verhindert-werden-bundesrat-will-lottomillionaere-ausbremsen-id18896821.html

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2

I know somebody in another country who won the lotto then bought a boat and sailed around the Pacific for some years so paying tax nowhere, possibly even legally.

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3

And better get divorced before you win.
Not like this chap:

Can’t find the article right now, but he even tried to have friend claim the win for him so he didn’t have to share with her.

Didn’t work, of course. Courts aren’t stupid when it comes to this stuff.

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4

A lovely tale. So for CHF 57.8 million she could tolerate the marriage to her husband a little longer.

5

I can understand that, I’d probably put up with the biggest arsehole on the planet for a bit for that sort of money.

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Especially when he’s the arsehole you have already put up with for some years entirely for free!

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7

If I really hated somebody that much, if I won $120m, I think I’d be happy to pay $60m to get rid of them as the $60m left over would be plenty to live off.

8

I thought the same:

and, under those circumstances, I’d certainly be content with just CHF 60 million. Of course, I would not then give up my habit of combing Aliexpress for the cheapest shopping deals.

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