background image
14.5. Interest and Penalties

Late Return Filing

In case the taxpayer fails to file a tax return, the tax authorities are required to send the taxpayer a reminder. In case the taxpayer still does not file a tax return, the tax authorities are allowed to assess the taxpayer based on estimates (usually based on former tax returns and/or comparables). Further, the tax payer can get a fine up to CHF 1,000 for the non-filing of the tax return,  in rare case of recurrence the fine can go up to CHF 10,000.

Late Payment of Tax Due

After 30 days of the final tax assessment late payment interest is due. The interest rates may vary from canton to canton. For federal income tax purposes, the late payment interest rate currently amounts to 3% per annum.

Compensatory Interests

Some cantons levy a compensatory interest system while the tax has not been finally assessed: in case the taxpayer pays the (expected) tax due before a certain due date (the date varies from canton to canton), he will get interest payments in his favor. In case the taxpayer pays the (expected) tax due before a certain due date (the date varies from canton to canton), he will be charged interest payments. The adjustment interests vary from canton to canton, and are currently in the range of 1%.