Restructuring and insolvency - legal requirements under the revised stock corporation law
As part of its management and financial responsibility, the Board of Directors is obliged to monitor the financial situation of its company. If a company gets into financial difficulties, it must take measures to avert insolvency or at least prevent the damage from increasing. The revised Stock Corporation Act, which came into force on January 1, 2023, imposes specific duties on the board of directors in the event of imminent insolvency, half capital loss and over-indebtedness. This article deals with the legal requirements and shows to what extent the revision has brought changes to these restructuring-related provisions and what new questions arise in practice.
Restructuring merger between sister companies
This article first explains the different concepts of the need for reorganization under commercial law and tax law as well as the requirements for the tax recognition of the assumption of loss carryforwards in the context of a reorganization merger between sister companies. The tax consequences for the merged companies and for the joint shareholders are then also examined using examples.
Emission tax for refurbishments
A distressed company can be restructured in various ways. Balance sheet restructuring measures that do not provide the company with any external funds are not subject to the issue tax. Financial restructuring measures, on the other hand, are subject to the issuance stamp duty of one percent if they are carried out in return for the issue of participation rights or if shareholders make a contribution.
Editorial on the focus "Refurbishments"
In difficult economic times, many companies are faced with considerable financial challenges. The Covid-19 pandemic in particular has led to a number of companies needing to be restructured despite the aid granted, such as loans or hardship compensation. Restructuring a company is a complex process that requires not only strategic and operational measures, but also careful consideration of legal and tax aspects. After all, restructuring a company can lead to significant tax consequences.
Compensation paid by Swiss companies to foreign directors
This video provides information on the possible tax and social security implications of a board of directors resident in an EU country in the case of a Swiss company limited by shares if the board of directors is also self-employed in its country of residence.
OECD publishes statement on taxation of multinational companies
On 31 January 2020, the Organisation for Economic Cooperation and Development (OECD) published a statement on taxation of multinational (digital) companies, according to which an agreement should be in place by the end of 2020 (see also taxlawblog contributions of 12 October 2019 and 9 November 2019).
SIF updates list of DTAs with abuse provisions
On 17 January 2020, the Bilateral Tax Issues and Double Taxation Division of the State Secretariat for International Financial Matters (SIF) updated the list of agreements with abuse provisions.
Canton ZH: Changes to the flat-rate tax credit
The ordinance on the implementation of the flat-rate tax credit was adapted to the new requirements of federal law as of 1 January 2020. On the same date, the Ordinance on cantonal tariffs for calculating the maximum amount up to which a flat-rate tax credit can be granted to natural persons was repealed.
Online refund application of withholding tax for persons resident in Germany
An online application of the Swiss Federal Tax Administration (FTA) will be available for refund applications for Swiss withholding tax by German residents from 31 January 2020.
The Swiss Federal Tax Administration has published Circular Letter No. 29b "Capital Contribution Principle
On 23 December 2019, the Swiss Federal Tax Administration published Circular Letter No. 29b "Capital Contribution Principle". Circular Letter No. 29b comes into force on 1 January 2020 and replaces the previous circular letters No. 29 and 29a.
Implementation of STAF: Regulations enter into force on 1 January 2020
At its meeting on 13 November 2019, the Federal Council approved three ordinances on the Federal Tax Reform and OASI Financing Act (STAF). These amendments concerning the tax part will enter into force on 1 January 2020.
WAK of the National Council for the abolition of the turnover tax and the insurance tax or reform of the withholding tax
In its media release of 5 November 2019, the National Council's WAK provided information on the parliamentary initiative on turnover tax and insurance tax, on the reform of withholding tax and on the neutrality of legal forms in corporate taxation.
