Friday, November 18, 2011

Swiss discriminatory taxes under fire from EU

The EU, hot on the heels of taking exception to some pernicious (and hapless) dealings by the UK and Germany in the field of individual taxation, is now aiming its fire at Swiss corporate taxation, which is distorting and discriminatory.
Switzerland may need to reform taxation of companies after a complaint by the European Union about discrimination between profits generated at home and abroad, the country's top tax negotiator said.

"There has been a dialogue with the EU about taxes on companies. According to the EU, the tax regimes applied by some cantons are discriminatory," Michael Ambuehl, state secretary for the finance ministry, told a conference on Thursday."
Swiss cantons have been abusing taxpayers all around the world, and it is fantastic to see that they are being taken to task for these abuses, which have been going on for far too long.

Tax Research, in an article looking at welcome further activism from the EU, says:
"The EU haw an impressive record in tackling tax haven abuse: in my opinion it has been the most effective agency in the world in doing so."
The U.S. (ignoring the fact of its being a gigantic tax haven itself) has taken major and innovative steps to protect itself against offshore tax haven abuse, as have other countries. But it may be fair to say that the EU is a pioneer, and perhaps the pioneer, in this broad arena, notwithstanding efforts by the likes of Italy (for strange and informal reasons, hidden behind other reasons) and Austria and Luxembourg (those two notorious European secrecy defenders) to throw spanners in the works.

An important story is emerging here.


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