Penalties for concealed personal expenses

Invoicing personal expenses to a company is prohibited because this artificially reduces taxable profit.

If a tax audit reveals that personal expenses have been paid by the business, serious consequences may result. The company then has a higher profit which will be taxed. In addition, the tax authorities will add this amount to personal income and issue an additional tax assessment, or even a tax penalty.

In addition, self-employed persons must wait for the tax authorities to also inform the OASI (AHV) administration, which will deduct social security contributions from the undeclared income.

For share capital companies, the tax authorities consider this process as a concealed profit payment, which has the same consequences as concealed personal expenses.

Last modification 27.02.2020

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