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The withholding tax in Switzerland is levied as a source tax on proceeds such as dividends and interest, with tax rates varying between 8% and 35%. Debtors must remit the tax, which is ultimately borne by the beneficiary.

The withholding tax in Switzerland aims to prevent tax evasion by making the declaration of income and earnings inevitable. It is a withholding tax, where the payer remits the tax and the recipient can reclaim it upon disclosure of all income.

Discussions on the abolition of the marriage penalty and the tax consideration of third-party child care costs are once again shaping the tax reform debate. Criticism comes from the FDK, which considers the tax system complicated and the measure unconstitutional.

In Switzerland, the abolition of the marriage penalty is being discussed, as married couples pay more taxes under the same conditions than unmarried ones. A new model "multiple-rate tariff with alternative tax calculation" is planned after previous proposals were rejected.

Federal Council proposes increase in deductions for third-party childcare costs; criticism for interfering with the cantons' tax authority. Expected tax revenue losses are to be offset by more employed persons.

Discussions about tax reforms focus on higher childcare deductions for third children and the abolition of the marriage penalty. Both projects are controversial and will be examined in more detail in a series of articles.

In Switzerland, the simplified inheritance post-taxation offers heirs an incentive to legally report untaxed assets, valid for only three years. This differs from the penalty-free voluntary disclosure, which covers a ten-year period.

The penalty-free voluntary disclosure in Switzerland allows for the reporting of undeclared income without fearing criminal consequences, but with the payment of back taxes plus default interest. A prerequisite is that the tax evasion was not yet known and the person cooperates in the reassessment.

Since the financial crisis, Switzerland has intensified measures against tax fraud by using penalty-free voluntary disclosures and simplified taxation of inherited assets. These apply only to direct federal tax as well as income and wealth taxes of the cantons.