Friday, January 18, 2013

Switzerland threatened with European tax blacklist

From World Radio Switzerland:

Switzerland has six months to improve its tax practices or it will be blacklisted by the European Commission.
That’s a warning given by a European Commissioner for Taxation and Customs, Algirdas Semeta, to the print media in Switzerland. He says if the EC’s expectations aren’t met some EU countries could adopt “defensive measures.”

The Commission had wanted Switzerland to agree to an automatic exchange of information, similar to the FATCA law it’s signed with the United States. But Switzerland has so far been opposed to such an agreement with the EC."
We don't have more details, other than an analysis from an informed commentator who said:
"The EU Member State will not allow any corporation to deduct an expense for tax purposes if the expense originates in Switzerland. This could even mean cost of good purchased from Switzerland is not tax deduct able, never mind services, labour, etc."
Which, if true, would be strong medicine indeed.

Update: an interview with EU Tax commissioner Algirdas Semeta in Le Temps newspaper. He said there are seven Swiss fiscal regimes - three cantonal and four federal - which are 'problematic' for Europe, he said. He rules out 'cohabitation' of Swiss "Rubik" deals (which TJN has long opposed) with European transparency principles, and promises to "defend the interests of our states."


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