Ex-Banker’s Four Million Franc “Gift” Sparks Tax Dispute: Court Rules in Favor of Tax Office
A former banker from the canton of Aargau found himself at the center of a legal battle after receiving nearly four million francs from an elderly widow. The man claimed the sum was a gift, but the tax office had doubts. Now, the higher court has made its decision, leaving the ex-banker with a hefty tax bill.
The story began in 2016 when the man filed a voluntary disclosure with the tax office, declaring untaxed assets. He stated that he had received a gift of almost four million francs in 2012 from an older widow who passed away in 2014, as reported by the Aargauer Zeitung. However, the tax office only accepted half of the sum as tax-free, classifying the remaining two million francs as taxable income.
The reason? The man couldn’t provide objective evidence that the transfer was indeed a tax-free donation.
A Friendship Built on Rare Meetings
The ex-banker, who worked in the banking sector until 2010, claimed he had maintained a close friendship with the widow for years. After her husband’s death in 1997, their contact intensified—though mostly over the phone. The two reportedly saw each other in person less than once a year but spoke almost every Sunday.
In 2000, the man was granted power of attorney over the widow’s assets, allowing him to manage her finances, conduct banking transactions, and withdraw cash. He stated that he handed over around 100,000 euros in cash annually, which the widow would take across the border herself.
in October 2012, when the widow was 76 and seriously ill, she opened a new account and transferred nearly four million francs to it. She closed her previous account, which both had access to. Just a year and a half later, she passed away at the age of 78.
Tax Office Challenges the “Gift”
The tax office questioned the legitimacy of the transfer, arguing that it was unlikely the widow would have given away her assets without a clear reason. They pointed to the regular cash transports, which they believed were not carried out without consideration. With no written receipts or a will to substantiate the claim, the tax office classified two million francs as taxable income.
The ex-banker contested the decision, arguing that the widow had no close relatives and had chosen to donate the money due to their long-standing friendship. Though, the higher court dismissed his complaint, siding with the tax office’s argument that there was insufficient evidence of a tax-free donation. The judgment is legally binding.
The Financial Fallout
For the ex-banker, this means he must pay income tax on the two million francs. The case also holds significance for the state, as it secures several hundred thousand francs in tax revenue.
| Key Points | details |
|—————-|————-|
| Amount Received | Nearly four million francs |
| Tax-Free Portion | Two million francs |
| Taxable Income | Two million francs |
| Court Ruling | Higher court dismissed the ex-banker’s complaint |
| Outcome | Ex-banker must pay income tax on two million francs |
This case highlights the importance of clear documentation when it comes to large financial transactions, especially those involving gifts or inheritances. Without sufficient evidence,even a seemingly generous gesture can lead to unexpected tax consequences.
What do you think about the court’s decision? Shoudl the tax office have accepted the ex-banker’s explanation? Share your thoughts below.
