Undercapitalization or Deemed Equity?
Dr. Roland Böhi analyses the Swiss legal basis to prevent undercapitalization. Referring to a recent decision of the Swiss Supreme Court, he demonstrates inconsistencies between legislation and tax practice which result from the legal obligation to make an economic distinction between equity and debt financing. On the basis of the Best Practice of the OECD/G20 within the framework of the BEPS Action 4 measures, he shows if and how a so-called “interest barrier” could be a viable remedy in Switzerland.
Prager Dreifuss Newsletter – March 2016: Administrative Assistance in Tax Matters – Group Requests
Dr. Urs Feller, Danielle Wenger and Michaela Lemke discuss the procedure and legal issues with regard to administrative assistance in tax matters based on the recent group request by the Netherlands.
The free flow of data
Ralph Butz and Michaela Lemke provide an overview of Switzerland’s steps to implement the Automatic Exchange of Information.
Indirect Financial Loss within a Corporate Group
The article of Dr. Roland Böhi discusses which risks arise from an indirect distribution of profits of a subsidiary to its grandparent company or to an affiliate. In particular, the article focuses on tax consequences for the Swiss tax subjects.
Employee Participations – Qualification of the Remuneration on the Disposal of Shares
In practice, there is often a problem of a satisfactory distinction between tax-exempt private capital gains and taxable income from taxable employment in case of disposal of employee participations held as private assets. Dr. Roland Böhi presents the general basics of employee participations and elaborates on the tax issues surrounding this topic.