"Structure follows strategy" in corporate succession - insights from the SIX Swiss Exchange Family Business Conference 2023
"Structure follows strategy" is a conclusion of the American business historian Alfred D. Chandler, which states that the strategy should be defined first and then a structure that leads to the realization of the strategy. This principle is often not sufficiently taken into account in corporate succession and the focus is prematurely placed on implementation and structuring issues. The topics discussed at this year's SIX Swiss Exchange Family Business Conference are set out below against this background.
Succession planning: tax pitfalls
When Swiss families think about the organization of their estate, they generally do not pursue any immediate tax objectives. In general, it is more a question of transferring assets to the next generation or at least initiating the future reorganization of ownership structures in the present. Of course, reducing wealth tax and breaking the tax progression, for example, can be an accompanying motive, but practice shows that this is rarely the actual "trigger". This article presents some typical questions.
The tax treatment of (underpriced) non-family business succession with special consideration of Ticino practice
Does an underpriced transfer of shares to an employee always lead to income tax consequences? With this article, the authors want to stimulate discussion on a very relevant aspect of non-family business succession: the distinction between (income taxable) employee shareholdings and (possibly non-income taxable) succession arrangements. The authors take a look at the practice and case law in the canton of Ticino and other cantons as well as the possible effects of recent inheritance law reforms.
Tax aspects of family business succession
In the coming years, many small and medium-sized companies will face the challenge of arranging their succession. A transfer against payment or free of charge may be considered in order to remain in family ownership. The planning and implementation of succession is an important topic for entrepreneurs with links to numerous areas of law. This article is dedicated to the tax challenges and solution strategies in family business succession in order to support companies in strategically well thought-out and tax-optimized planning.
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Canton of Zurich: Amendment of the directive on the valuation of usufruct and periodic benefits for inheritance and gift tax purposes
The directive of the Finance Directorate of the Canton of Zurich on the valuation of usufruct and claims to periodic benefits for inheritance and gift tax purposes has been updated due to changes in life expectancy.
Deduction of professional expenses in the light of COVID-19 in the tax return 2020 (Canton of Zurich)
On September 9, 2020, the Cantonal Tax Office of Zurich published a notice according to which dependent employees can deduct their professional expenses (e.g. travel expenses between home and place of work and meals) in their 2020 tax return as they would have been incurred without COVID-19.
FTA publishes circular on flat rates for professional expenses and remuneration in kind 2021
The Swiss Federal Tax Administration (FTA) has published a circular entitled "Professional expense allowances and benefits in kind 2021 / Compensation for the consequences of cold progression in direct federal tax for the 2021 tax year".
FTA publishes statistics on the tax burden on individuals
A review of the 2010-2018 data shows that the tax burden in Switzerland has declined during this period.
Vote on the proposal to increase child deductions
On 27 September 2020, a vote will be held on whether the general child deduction and the deduction for third-party childcare should be increased in the Federal Direct Federal Tax Act (DBG).
Block chain and distributed ledger technology: No changes to tax law
At its meeting on 19 June 2020, the Federal Council took note of the report on a possible need to adapt tax law in the area of block chaining. The report comes to the conclusion that there is no need for specific legislative adjustments in tax law.
Memorandum of Understanding between Switzerland and Italy concerning COVID-19 measures
On 20 June 2020, the State Secretariat for International Financial Matters (SIF) reported the conclusion of a new memorandum of understanding between Switzerland and Italy concerning COVID-19 measures.
Consultation agreement with Germany on the taxation of cross-border workers and state support services
On 11 June 2020, the State Secretariat for International Financial Matters SIF concluded a new consultation agreement between Switzerland and Germany on the taxation of cross-border commuters and the treatment of state support services.
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Specialties in wealth tax (valuation, bouclier fiscal, etc.)
Workshop by Marco Greter and Nina Blanz on the occasion of the ISIS) seminar on September 23-24, 2024 entitled "Specialties in wealth tax"
Asset structuring through trusts and foundations
Workshop by Andrea Opel and Andrea Hildebrand on the occasion of the ISIS seminar from 23 - 24 September 2024 entitled "Asset structuring using trusts and foundations"
