Three years in a row Municipality miscalculates millions in taxes - now there's a huge hole
Tax amounts were incorrectly booked in the municipality of Bettingen over a period of three years, leading to a considerable discrepancy in the finances.
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- The municipality of Bettingen in the canton of Basel-Stadt miscalculated its tax revenue over three years.
- 19.5 million francs were recorded as assets instead of liabilities.
- Now there is a hole of 1.7 million francs in the budget, which is to be covered with equity.
The municipality of Bettingen in the canton of Basel-Stadt made a significant accounting error that spanned three years. A total of CHF 19.5 million was incorrectly entered in the tax accounts, which made the municipality's tax revenue appear significantly higher than it actually was.
This error only came to light during a meeting about the financial equalization with the canton, reports SRF: The error arose because an item in the balance sheet was incorrectly booked under "Assets" instead of "Liabilities". This turned a minus into a plus.
Despite suspicions on the part of the municipality, which contacted the canton as early as 2022, the error was only discovered during an audit by the canton's financial auditors. Municipal president Nikolai Iwangoff explained that it is human nature to be blinded by supposedly higher income.
Joy instead of astonishment
The canton's finance director, Tanja Soland, also admitted that there were misunderstandings during the first 2022 audit. The joy over the supposedly higher tax income had led to the figures not being questioned.
The municipality must now correct the incorrect booking retroactively and the adjusted annual accounts must be approved by the Bettingen electorate next spring. Despite the corrections and the adjustment of the budget for 2025, which now envisages a deficit of CHF 1.7 million, the municipality does not have to take any drastic measures.
The shortfall can be covered from equity, meaning that planned projects and investments are not jeopardized. A tax increase is also not planned.
The municipality's stable financial situation has helped to ensure that the error does not have any serious consequences. A deficit is expected for 2025 and 2026, but the municipality expects a positive result again in 2027. The finance director praised the municipality for its cautious budgeting, which prevented greater damage.
