Why road fines on company vehicles require a clear procedure
In many Swiss SMEs at least one vehicle is registered to the company: executive cars, vans, leased vehicles or cars in a shared pool. When a road traffic fine notice (Ordnungsbusse) arrives, the recipient is almost always the registered owner — i.e. the company — even if an employee, external contractor or the owner was at the wheel.
Paying the fine “to get it over with” without tracking who drove and without recovery rules creates two problems: costs that remain with the business without economic justification, and risk of disputes with staff if you try to charge them afterwards. At the same time, accounting and tax returns must correctly treat an expense that, in many cases, is not deductible for profit tax purposes.
This guide outlines the typical path from notification to payment, options for recovery from the driver in compliance with the Code of Obligations (CO), federal and cantonal tax criteria, and accounting entries suited to compliant ordinary bookkeeping — including with tools such as Accountex to link documents, cost centres and vehicles.
Who is responsible: vehicle owner, driver and employer
Administrative liability towards the road authority does not always match internal liability between company and employee:
| Aspect | Towards the authority (road traffic) | Internally in the company |
|---|---|---|
| Fine recipient | Registered owner (SME = company) | Driver identified via official notice or internal declaration |
| Payment | Company pays by the deadline to avoid surcharges | Recovery from employee only if provided for in contract/rules and applicable law |
| Leased vehicle | Lessee is often the registered owner — check contract and insurance | Same internal rules; document which vehicle and which employee |
| Private use of company vehicle | Fine remains with the registered owner | Recovery more common if the offence occurs off duty (with contractual basis) |
| Serious / criminal offences | Criminal procedure against the driver | Separate from accounting treatment of simple Ordnungsbussen |
The company cannot “refuse” the fine with the competent office on the grounds that a third party was driving: it must pay or challenge it in the ways provided by federal road traffic law (SVG) and contravention law. Recovery from the employee is a matter of employment law and company policy, not automatic transfer of the administrative penalty.
Recovery from employees: CO, contract and regulations
Art. 323a CO governs salary deductions: they are permitted only if provided for by agreement, custom, standard employment contract or collective bargaining agreement, with legal limits (as a rule at most one tenth of the salary due on pay day and, cumulatively, one week’s wages). Reimbursement of Ordnungsbussen can be anchored in a contractual clause (often classified as a contractual penalty) or, alternatively, in a claim for damages under art. 321e CO if the driver acted intentionally or negligently; payroll verification follows art. 323b CO (set-off), with distinct rules for intentionally caused damage. A road fine for speeding or illegal parking does not automatically imply gross negligence for damages purposes; it depends on the facts (very excessive speed, repeat offences, improper use of the vehicle, etc.).
Recommended contractual basis
Include in the employment contract or staff regulations a clause providing for reimbursement of Ordnungsbussen incurred while driving company vehicles, with an obligation to report immediately to the administrative office.
Define whether recovery also applies to offences during private time with a company car used for mixed purposes, and whether deductibles exist (e.g. first minor offence borne by the company).
Operational procedure
- Record the fine with procedure number, licence plate, date and amount.
- Identify the driver (internal form, fleet telematics, service calendar).
- Obtain signed acceptance of the charge or start dialogue if disputed.
- Recover via payroll deduction, internal invoice or dedicated bank transfer.
- Archive the trail for internal checks or audit.
If the employee does not accept the charge and there is no valid basis, the company can act only through civil law (damages), with a higher burden of proof. To avoid friction, many SMEs combine written policy, road safety training and monitoring of points on regular drivers’ licences.
Tax deductibility and VAT
For profit tax purposes (federal and cantonal), administrative monetary penalties with a punitive character paid by the company are generally not treated as deductible costs: according to Federal Supreme Court case law (BGE 143 II 8), they do not constitute a commercially justified operating expense under arts. 58 and 59 DBG. In tax return practice, these outflows often need to be added back or reclassified as non-deductible, increasing taxable income relative to accounting profit.
Recovery by the employee does not “make deductible” the original fine amount for tax purposes: if the company incurred a non-permitted penalty, the principle remains; employee reimbursement is rather operating income or a reduction of net cost incurred, to be reflected consistently in accounting and tax reporting. If in doubt on borderline cases (late-payment surcharges, ancillary administrative fees), align with the tax adviser or cantonal tax office.
For VAT: Ordnungsbussen and road traffic fines are not taxable supplies; there is no input tax deduction on fines. Any internal handling costs (administrative time) do not generate VAT credit. If leasing or maintenance invoices include separate line items, do not mix fines into those entries.
Accounting in ordinary bookkeeping
Typical logical scheme for an SME with a Swiss chart of accounts (indicative numbering, adaptable to your own chart):
| Transaction | Entry (example) | Note |
|---|---|---|
| Fine payment | Debit bank / Credit penalties expense account (e.g. 6940) | Attach official notice; cost centre “Fleet” or vehicle |
| Charge to employee | Debit receivable from employee (e.g. 1170) / Credit penalties expense account | Partial or full reversal of expense; internal document |
| Recovery via payroll | Debit net salaries account / Credit receivable from employee | Coordinate with payroll; do not confuse with benefit in kind |
| Non-recoverable fine | Final expense + “non-deductible” flag in tax closing | Profit tax reconciliation |
| Late-payment surcharge | Same penalties account or “surcharges” sub-account | Consider recovery from employee only if provided for in policy |
Linking each transaction to the vehicle (licence plate, leasing contract) improves total cost of ownership reporting and supports decisions on policy and training. In Accountex, attaching the notice and annotating the employee contact facilitates audit trail and month-end close without “suspense” items on the bank account.
Fleet, leasing and mixed-use vehicles
With multiple vehicles, centralising the “Fines” inbox avoids payments remaining unallocated. For leased vehicles, check whether the contract requires mandatory notification to the lessor and who administratively handles the procedure; for accounting, who pays the cash flow remains relevant.
The mixed-use car (business + private) is common in SMEs: separate rules apply for benefit in kind and OASI/AI/IC; for fines, policy should clarify whether, absent proof to the contrary, the charge follows the declared driver. Telematics devices and digital logbooks reduce disputes but must comply with data protection (FADP).
Owners and managers who use the company car as if it were their own should follow the same procedure as staff: transparency towards administration and the auditor, especially if the company is subject to ordinary audit or strengthened corporate governance requirements.
Checklist for administrators and accounting
- 1.Written policy on road fines, integrated in contract or regulations, with consents where required.
- 2.Dedicated account for administrative penalties and procedure for non-deductible add-back in tax closing.
- 3.Workflow: notice → driver identification → timely payment → documented recovery.
- 4.Alignment with payroll for permitted deductions and employee statement.
- 5.Periodic report per vehicle: fines, net cost, comparison with fleet budget.
Summary
Fines on company vehicles in Switzerland fall in the first instance on the SME as registered owner; recovery from whoever drove requires a contractual basis and attention to arts. 323a and 323b CO as well as, where applicable, art. 321e CO. For tax purposes, treating Ordnungsbussen as non-deductible costs avoids adjustments on profit tax; in accounting, separating payment, receivable from employee and collection keeps the balance sheet and liquidity clear.
A standard procedure, supported by accounting software that links documents, vehicles and people, reduces errors and administrative time — and leaves the owner to run the business, not chase untracked fines.