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.
IFLR Magazine July/August 2018: Share Transfer Restrictions – Unanswered Questions
In the July/August edition of the IFLR Magazine Dr. Andreas Moll, Matthias Bürge, Dr. Christian Schönfeld and Charlotte Rupf discuss the Swiss regime regarding transfer restrictions for shares of companies limited by shares. Furthermore, in light of the recent end to the long lasting conflict regarding the purchase of parts of the shares of SIKA by Saint-Gobain, they discuss several issues relating to the transfer restrictions that remain unanswered. You can find the article in English here.
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.
Tax Newsletter December 2017: Taxation of Initial Coin Offerings in Switzerland
Prager Dreifuss breaks down the taxation models applied to Initial Coin Offerings to help give you a better sense of the current Swiss fiscal regulatory spectrum.