Tax avoidance through offshore structures
On Sunday evening, 4 October 2021, various media around the world simultaneously published the so-called "Pandora Papers", which once again accuse various individuals of tax evasion and tax avoidance through structures, be it in the form of foundations, trusts or companies based in so-called tax havens. There have been similar revelations before, namely in April 2016 in the "Panama Papers" and in November 2017 in the "Paradise Papers". What all these revelations have in common is that they are based on data leaks and target prominent people from politics, business, sports and entertainment with media attention. The revelations have led to an increased call for transparency and increasingly strict compliance regulations. However, the media also reveal that these offshore companies are legal structures used to optimise taxes, but not to evade them. Foundations and trusts are indeed legal structures that are usually not set up for purely tax considerations. Nevertheless, such (offshore) structures can lead to under-taxation if they are treated as fiscally transparent by the Swiss tax authorities and the founder/trustee and/or beneficiary resident in Switzerland has not declared the assets and income.
"Mother-daughter" arrangement between Italy and Switzerland
Opinion No. 537 of 6 August 2021 of the Italian tax authorities, described in this article, is a further sign of the "normalisation" of income tax relations between Italy and Switzerland.
Refund of withholding tax in international relations
The refund of withholding tax on dividends from Swiss companies by foreign shareholders can only be made on the basis of a double taxation agreement between Switzerland and the country of residence of the claimant. In order to claim relief from withholding tax under the applicable double taxation treaty, the residence of the claimant must be confirmed by the foreign tax authorities.
Transfer of the registered office to Switzerland - A case for the old reserve practice?
The problem of old reserves has become an integral part of daily tax consulting practice in Switzerland. The corresponding problem will be examined in this article on the basis of a transfer of the registered office of a foreign company to Switzerland. Here, too, the Federal Tax Administration (FTA) initially assumed that the "old reserves" brought into Switzerland were subject to Swiss abuse practice without restriction.
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FTA publishes circular regarding the refund of withholding tax on lump-sum pension benefits in relation to Italy
On August 12, 2022, the Swiss Federal Tax Administration (FTA) published the circular "Explanatory notes on the refund of withholding tax on lump-sum pension benefits to recipients resident in Italy".
Memorandum of Understanding between Switzerland and Italy
On July 22, 2022, the State Secretariat for International Financial Matters (SIF) announced that Switzerland and Italy have agreed that the Memorandum of Understanding on the impact of COVID-19 measures on the treatment of earned income from employment under the 1974 DTA and the 1974 Cross-Border Agreement (see our article of June 20, 2020) will remain applicable until the end of October 2022 to all individuals who are residents of a Contracting State and regularly engage in gainful employment in the other Contracting State. Before the end of October 2022, the competent authorities will consult again.
Memorandum of Understanding between Switzerland and France
On July 20, 2022, the State Secretariat for International Financial Matters (SIF) announced that a mutual agreement had been reached between the competent authorities of Switzerland and France regarding the taxation of cross-border workers who work in their home offices as a result of measures taken to combat Covid-19. This agreement implements the joint declaration of June 29, 2022 (see our article of July 2, 2022) without amending it, thus helping to clarify the situation. The Memorandum of Understanding is valid until October 31, 2022, as the two countries agreed on June 29, 2022 to work on the implementation of a permanent agreement on telework applicable to cross-border workers by that date.
Withholding Tax: Adjustment of the FTA's Practice in the Event of a Secondary Adjustment
In a communication dated July 19, 2022, the Federal Tax Administration (FTA) informs about the following effects of the Federal Law on the Implementation of International Agreements in the Tax Field (StADG), which entered into force on January 1, 2022, on the practice of the FTA in the field of withholding tax in the case of a secondary adjustment:
Consultation agreement between Switzerland and Germany concerning non-return days
The State Secretariat for International Financial Matters (SIF) informed on 18 July 2022 that the competent authorities of Switzerland and Germany have agreed on the basis of Art. 26 para. 3 DBA that working days on which a cross-border commuter within the meaning of Art. 15a para. 2 sentence 1 DBA works all day at the place of residence in the State of domicile are not deemed to be working days on which the person does not return to the place of residence after the end of work due to the performance of his or her work. These working days are therefore not considered non-return days within the meaning of Art. 15a, para. 2, sentence 2 DBA.
Switzerland and Tajikistan sign Protocol of Amendment to Double Taxation Agreement
On July 11, 2022, SIF informed that on July 04, 2022, Switzerland and Tajikistan signed a protocol amending the Convention on the avoidance of double taxation in the field of taxes on income and capital.
The Confederation regulates the implementation of the OECD minimum tax in Switzerland
In order to implement the OECD/G20 project on the taxation of the digital economy, the Federal Council proposes a supplementary tax, with 25% of the revenue going to the Confederation and 75% to the cantons and municipalities.
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Reimbursement in international circumstances - current practice and problem areas
Workshop by Oliver Oppliger on the occasion of the ISIS) seminar on October 21, 2024 entitled "Restitution in international relations - current practice and problem areas"
Current cases on intercantonal and international corporate tax law (2024)
Workshop by René Matteotti and Philipp Betschart on the occasion of the ISIS) seminar on June 3 - 4, 2024 entitled "Current cases on intercantonal and international corporate tax law"
