Swiss voters shocked the political world by rejecting a proposal to bring the country’s corporate tax system in line with international standards.
The tax reform, widely supported by the business community, removed a series of special low-tax concessions that have encouraged many multinationals to set up shop in Switzerland.
Experts say the future of the Swiss tax system is uncertain. The results of the vote could cause headaches for companies looking to implement and discourage those looking to relocate to the country.
“What they don’t know [tax] Measures will be available…that’s not a very solid basis for making investment decisions.
In recent years, Switzerland has come under intense pressure from G20 and OECD countries to clean up its tax system. The country risks being “blacklisted” by other countries if it does not change its tax system by 2019.
Many voters rejected the tax reform package, according to Stefan Kuhn, head of corporate tax at KPMG in Switzerland.
The current tax system gives preferential treatment to some companies with large overseas operations. International tax authorities say the rule amounts to unjustified corporate subsidies.
Martin Naville, president of the Swiss American Chamber of Commerce, said voters may not have understood the complexities of the reform. The measure was rejected by his 59% of voters.
“I think it’s a very bad day for Switzerland,” said Nabil. “Obviously, Switzerland’s uncertainty and credibility [system] I got hit hard. ”
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Swiss officials say they will move quickly to develop revised tax reform proposals. Naville said he hopes new rules will be devised in the coming months.
“All stakeholders must take responsibility for developing an acceptable and competitive tax system and restoring the confidence in the famous political stability that has given Switzerland such a favorable position,” he said in a statement. rice field.
Naville hinted that potential tax reforms in the US and UK could tempt Switzerland-based companies to relocate, putting further pressure on the Swiss tax base.
CNNMoney (London) First published February 13, 2017 at 10:10 AM ET
