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.
Taxation of spouses in international relations - tax segregation issues
In the zsis) issue of November 2019, the authors dealt with tax law stumbling blocks in the taxation of spouses in international relationships. In this article, they have focused on the tax segregation of international spouses. On the basis of a test scheme with three questions, they show that a systematic procedure is essential for correct tax segregation and that there is still a need for action here on the part of the assessment authority and the courts.
FDK comments on the partial abolition of the imputed rental value
In a media release dated 13 June 2019, the Conference of Cantonal Finance Directors (FDK) issued a statement on the proposal of the preliminary advisory commission of the Council of States to reform the taxation of residential property.
Federal Supreme Court annuls vote on marriage penalty
The Federal Supreme Court revokes the 2016 vote on the popular initiative "For marriage and family - against the marriage penalty". The Federal Council's incomplete and non-transparent information would have violated the freedom of voters to vote. Given the narrow rejection of the bill and the seriousness of the irregularities, it is possible that the result of the vote could have been different.
Adjustment of the price list regarding the Direct Federal Tax 2018
On 11 March 2019, the Swiss Federal Tax Administration (FTA) published an adjustment to the share price lists (ICTax) regarding the Federal Direct Tax 2018.
Circular "List of providers of recognised pension products of tied pension provision (pillar 3a)
On 8 February 2019, the Federal Tax Administration (FTA) published the circular "List of Pillar 3b endowment insurance policies eligible for surrender".
Increase in tax deductions for health insurance premiums
The Commission has also discussed two motions calling for an increase in the deductions for health insurance premiums in direct federal tax. The Motion Grin (17,3171), which would like to almost double the current deductions, was transferred with 9 to 3 votes. For the majority of commission members, health insurance premiums are compulsory charges and part of the unavoidable cost of living. Higher deductions are justified by this and by the strong growth in premiums over the last few years. A minority rejects the motion because higher incomes would benefit disproportionately. The motion Lehmann/Regazzi (15,4027), which wants to make self-paid health insurance premiums fully tax deductible according to income, was rejected by 8 votes to 4. The gradation is problematic and complicates the tax system.
FTA publishes withholding tax treatment of profits from the Money Gaming Act
On 6 February, the Federal Tax Administration (FTA) published a specialist information document on the withholding tax treatment of profits from the Money Gaming Act.
Residential property taxation: discussion of the preliminary draft commenced
The Commission for Economic Affairs and Taxation of the Council of States (WAK-S) has accepted without opposition the preliminary draft on the system change in the taxation of home ownership (17,400) and has largely conducted the detailed consultation.
Once more self-disclosures
Last year, the tax office of the Canton of Zurich received 7250 voluntary declarations, thus again significantly exceeding the record figure of the previous year (6200). This is due to the Automatic Information Exchange (AIA) of bank data, which came into force between numerous countries at the beginning of 2017. Since the possibility of voluntary reports without penalty (2010), the cantonal tax office had previously received 850 to 2100 such reports per year.
Special problems of international tax planning of private investments, including international administrative and legal assistance in tax matters
Workshop on the occasion of the ISIS) seminar on 10-11 September 2018 entitled "Current Problems of Taxation of Private Investments".
Current problems of taxation of joint-stock companies and shareholders (2018)
Workshop on the occasion of the ISIS) seminar on 4-5 June 2018 entitled "Current problems and perspectives of corporate tax law".
