Tax Newsletter December 2018: Taxation of blockchain and crypto currency
The tax team discusses a fictional case of an initial coin offering (ICO) from a Swiss tax perspective.
Smart Contracts under Swiss Law
This paper examines the legal qualification of Smart Contracts under Swiss law and gives an over-view over how Smart Contracts may interact with the fundamental rules of contract law. Furthermore, on the basis of this examination the need for legislative action with respect to Smart Contracts will be assessed.
It is concluded that the potential applications of Smart Contracts on the blockchain are vast and sound very promising. If applied in a sensible way this technology indubitably will lead to gains in efficiency of contract execution and lower transaction costs.
However, Smart Contracts will not prevent contractual disputes from arising. Consequently, parties will still resort to court actions. In these cases, Smart Contracts may tend to make things more complicated because while they may not eliminate the need for courts they limit the accessibility of courts for their parties via their self-enforcing nature.
Furthermore, while Smart Contracts may attempt to substitute law by code that does not mean that they will be able to render the law useless. There will still be need for mandatory law for various purposes, including, but not limited, to protect the parties from adverse consequences which the Smart Contract technology itself may produce.
The paper can be found in the FinTech Edition, Issue 1, 2018.
Tax Newsletter February 2018: Reform of the U.S. Tax Regime – The Swiss Perspective
Prager Dreifuss takes a closer look at international linkages of the recent U.S. tax reform and analyzes the major challenges ahead for individuals as well as multinational corporations in Switzerland.
Revision of the FINMA circular regarding public deposits with non-banks – submission of comments to the draft by Prager Dreifuss
Prof. Dr. Urs Bertschinger and Dr. Christian Schönfeld have submitted comments to the draft for the revision of the Swiss Financial Market Supervisory Authority FINMA’s circular 2008/3 “Public deposits with non-banks” which specifies the changes in the Swiss Federal Banking Ordinance (easement for FinTech providers). You can find the submitted comments in German here.
Corporate criminal liability: Clarification by the Federal Tribunal
Urs Feller and Marcel Frey examine the clarification offered by the Federal Tribunal in a recent decision on the prerequisites for the primary criminal liability of corporate entities.