National Council maintains mandate for tax deductions
Silvia Hunziker
The National Council insists that the Federal Council implement an adopted motion on the taxation of foreigners. On 27 September 2018 he refused to write them off.
The motion instructs the Federal Council to ensure, within the framework of the negotiation of double taxation agreements, that general deductions and social security deductions are fully taken into account for persons resident in Switzerland and persons with limited tax liability abroad.
The Federal Council had requested parliament to reject the motion. Other states would hardly commit themselves to granting deductions under Swiss law for the income taxable in their country, he argued. Therefore, only a unilateral obligation at Switzerland's expense would remain.
After the motion was accepted, the Federal Council conducted a consultation process along these lines. However, the proposed variants were unanimously rejected. The cantons see implementation at the expense of foreign countries as the only option. However, the Federal Council does not consider this to be enforceable.
He is now asking the Parliament to write off the motion. "They cling to the principle of hope", said Minister of Finance Ueli Maurer. This hope will die, even if the Council sticks to its mandate. The National Council nevertheless decided by 174 votes to 6 not to write off the motion. The next decision will be taken by the Council of States.
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