"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.
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.
Companies should be allowed to deduct fines from taxes
According to the National Council, companies should be allowed to deduct foreign fines and penalties from taxes under certain conditions. The Federal Council and the Council of States had decided otherwise.
Calculation of the participation deduction for too-big-to-fail instruments
On 20 September 2018, the National Council discussed the dispatch on the Federal Act of 14 February 2018 on the calculation of the participation deduction for too-big-to-fail instruments and approved the Federal Council's draft.
New VAT regulation Online shopping abroad could become more expensive from 2019
The Federal Council has decided that mail order companies with a turnover of at least CHF 100,000 in Switzerland must pay VAT. Foreign online merchants today do not have to pay VAT on small consignments with a tax amount of less than five francs. For Swiss mail order companies, however, different rules apply: The consignments are subject to VAT if the company is entered in the VAT register. From 1 January 2019, this unequal treatment will cease.
Federal Council adopts dispatch on the BEPS Convention
On 22 August 2018, the Federal Council adopted the dispatch on the multilateral agreement on the implementation of measures to prevent base erosion and profit shifting (BEPS). The message was referred to the Federal Councils.
WAK-S: Withholding tax
The commission agreed by 6 votes to 4 with 1 abstention to the decision to follow the commission initiative of its National Council sister commission 17,494.
Tax deductibility of fines under certain conditions
For the second time, the WAK-N dealt with the tax treatment of financial penalties (16,076). It proposes by 13 votes to 12 that fines and penalties imposed abroad should be tax deductible under certain conditions.
Tax bill 17 - the WAK-N on course for the Council of States
The Committee for Economic Affairs and Taxes of the National Council (WAK-N) has begun detailed consultations on tax bill 17 (18,031) and has taken decisions on a number of key issues. So far, it has followed the Council of States in all points, including social compensation via the AHV and dividend taxation. The detailed discussion will be concluded at the meeting on 3 September.
Simultaneous dividend booking in group relationships
The Swiss Accounting and Reporting Manual allows a domestic parent company to recognize the investment income of its subsidiary (i.e. its dividend declared in financial year n+1) as income on a deferred basis in the financial year in which the subsidiary earned it. If the parent company makes the final booking of this income to the income statement at the time of distribution of the dividend, this constitutes proper booking for the purposes of the refund of the withholding tax and for the implementation of the reporting procedure.
Asset deal versus share deal for corporations
Workshop on the occasion of the ISIS) seminar on 23 November 2017.
