These jurisdictions include, but are not limited to:

• the Bahamas
• Barbados
• Bermuda
• British Virgin Islands
• Cayman Islands
• Jersey, Channel Islands

In other jurisdictions, such as Mauritius, the local tax and corporate regimes have been adapted to ensure that economic substance is taken into account in a manner coherent with the OECD and EC objectives.

Are there penalties for non-compliance?

Yes, there are both financial and criminal penalties. Also, the entity may be struck off if it fails to meet the economic substance requirements.

In 2019 the Forum on Harmful Tax Practices started its work on this new “global standard” on substantial activities in no or only nominal tax jurisdictions. This coincides with work being done through the European Union’s Code of Conduct Group assessing low or no-tax jurisdictions on tax transparency, fair taxation and compliance with the Base Erosion and Profit Shifting’s project.

Under the threat of yet another black-list the EU required a number of jurisdictions (Anguilla, Bahamas, Bahrain, British Virgin Islands, Cayman Islands, Isle of Man, Jersey, Marshall Islands, Turks and Caicos Islands, United Arab Emirates and Vanuatu) to adopt, in a very short timeframe, economic substance requirements for businesses based there.

Without going into the detail of the specific legislation being introduced in each jurisdiction it should be noted that the British Crown Dependencies and British Overseas Territories have all adopted, or are in the process of adopting very similar legislation, with or without specific guidance on the practical requirements to meet economic substance tests depending on the nature of the business activity.

The legislation generally applies so that the economic substance requirements are applicable to legal entities carrying on the “relevant activities” below:

• banking business
• insurance business
• fund management business
• finance and leasing business
• headquarters business
• shipping business
• holding business (defined as “pure holding companies”)
• intellectual property business
• distribution and service centre business

The specific requirements for economic substance will depend on the relevant activity, and are being defined by each jurisdiction locally.

Trusts are not in scope but corporate trustees are in scope depending on the circumstances.
If the entity does not have adequate substance in that territory it may be possible to confirm that the business is being undertaken elsewhere, which may be subject to different levels of proof being required. It is specifically worth noting that the place of effective management will be included in the BVI BOSS registry. The information concerning non-compliance may be exchanged with the jurisdiction where the “real” economic activity is being undertaken, leading to tax enquiries in that country.

If the substance requirements are not met, or if the company is not seen to be managed elsewhere then there may be sanctions and penalties imposed, with the company eventually being struck off.

The deadlines for application and implementation of the law will vary locally. For the BVI and Caymans the legislation is effective from 1 January, 2019 for newly incorporated entities.

Next step:

You might use this opportunity to review the suitability of the structure to ensure that it is robust taking into account the expected longer term aims of the OECD BEPS project and the EU aims of a common consolidated tax base, and minimum levels of corporate taxation, and the push towards publicly available information on beneficial ownership of entities.

First you should consider the relevant legislation in the place of registration of the business entity.

Then you will need to review whether or not the entity is a relevant entity. This will also depend on the relevant period under consideration, and will probably require the production and analysis of accounts for the relevant period.

Then you will need to consider the local substance requirements for that activity, and review whether or not the entity already meets those requirements.

If the entity is not effectively managed in that jurisdiction where should it be considered to be managed? This will depend on many factors, such as the location of directors, physical offices, and where decisions are being taken in respect of the core activities. You will need to consider what proof can be obtained in respect of this alternative jurisdiction (eg tax assessments), and whether or not there are other tax effects in that jurisdiction resulting from this classification.

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Two years after voters rejected a similar idea to reform corporate tax, the issue – this time linked controversially to pensions – was largely accepted.

64.4% of Swiss voters approved the government-backed plan, with none of the 26 regions voting against.

The legislation will bring Switzerland into line with international tax rules by ditching preferential rates offered to multinationals, while lowering baseline rates in an effort to prevent them from fleeing to more attractive destinations.

International pressure

Acceptance comes as a relief to authorities, who have been under pressure to comply with OECD and EU rules on fair tax practices.

Speaking at a press conference on 19 May 2019, Finance Minister and current Swiss president Ueli Maurer welcomed the “robust” result that he hoped would cement Swiss competitiveness as well as bring the country back into the EU’s good books.

Indeed, throughout the lead up to the vote, the Government had warned that rejecting the package would compromise Switzerland’s attractiveness for business and could spark an exodus of firms to low-tax competitors like Ireland, Singapore, or the Netherlands.

Supporters say the new system will thus provide stability and certainty for the 24,000 foreign companies based in Switzerland, which generate a quarter of Switzerland’s jobs and a third of its economic output.

Under the new regime, such firms will lose the “special status” allowing them pay less tax than normal Swiss companies, but will still be able to cut costs by claiming deductions on income from patents or spending on research and development.

And though the new rules are expected to produce an initial annual shortfall of some CHF2 billion in lost tax revenues, in the long-term, supporters say, failure to reform would have worked out even more costly.

Division remains

While the country’s main business federation welcomed the outcome, opponents of the plan – some left-wing groups and NGOs who saw it as too generous to companies – said the result on 19 May 2019 was bad news for public services, which will suffer from lower tax receipts.

Céline Vara, vice-president of the Swiss Green Party, which opposed the plan, told public radio that the CHF2 billion drop in tax revenue would come at the expense of ordinary taxpayers. “Public services, creches, or public transport will have to be cut [to fund the loss],” she said.

The Social Democrats, meanwhile, who supported this version of the reform (after opposing in 2017) announced on 19 May 2019 that it plans to launch an initiative to introduce a minimum threshold for tax rates across all Swiss cantons; as things stand, the ability of regions to set their own rates leads to unhealthy competition, it reckons.

Cantonal versions

Alongside the national ballot, the cantons of Geneva and Solothurn also voted on 19 May 2019 on corresponding laws to implement tax reforms at the regional level.

In Geneva, where there is a high concentration of multinational companies, voters accepted a plan to set the baseline corporate rate for all companies at 13.99%. Previously, it had been 11.6% for “special status” firms, and 24.2% for others. The reform will come into force on 1 January 2020.

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The advance tax is particularly imposed on dividends paid by a Swiss joint stock company to its parent company. A Swiss company that pays out the dividend is required to deduct the advance tax from the dividend and pay this tax to the Tax Administration (hereinafter, “AFC”). The beneficiary parent company receiving the dividend receives a net dividend and thus bears the tax expense.

 In general, the advance tax may be recovered in national reports (i.e. a Swiss entity held by another Swiss company) if it is properly entered in the books and declared. However, the advance tax is a definitive expense if the parent company is established abroad. Nonetheless, in application of double tax agreements signed between Switzerland and the partner States, a full or partial rebate may be received for any advance tax paid. In any case, certain conditions must be fulfilled as defined in said agreements (the withholding percentage, the number of years withheld as well as the substance of the parent company abroad, for example).

Thus, it is important to ask in advance about the application of the filing procedure for international reporting. The filing procedure is also important upon the liquidation of a Swiss company held by a foreign parent company. In fact, surplus distributions are subject to advance tax. Please note that surplus distribution means all earnings-based distributions to the shareholders of the dissolved company. The reimbursement of the nominal capital as well as the capital contribution reserves are not considered part of the surplus distribution.  

In practice, the filing procedure consists of a pre-authorisation request via three forms (823/823B/823C). This request must be submitted to the AFC which – after verifying the conditions required – will approve the authorisation.

The filing procedure is thus an advance request for the application of the withholdings rebate. This rebate is, in principle, provided for by the agreement in effect signed between Switzerland and the parent company’s State of residency (or in application of the agreement between the Swiss Confederation and the European Union for the automatic exchange of financial account information).

There are many advantages to this procedure. The filing procedure makes it possible to avoid the payment of a 35% advance tax and then request reimbursement for the difference between the tax paid and the residual provided for by the double tax agreement. This difference is returned to the taxpaying company (if all conditions are fulfilled) without any interest. Moreover, in terms of treasury, the company requesting the filing procedure in advance only has to pay the advance tax residual established in the Agreement. The company does not have to pay any sum higher than the tax due and, therefore, the company can streamline its treasury management.

Be careful with the theory of old reserves:

Implementing the theory of old reserves involves a major risk for Swiss capital companies held by foreign parent companies. We shall outline the classical situation where this theory applies.

The problem is when a Swiss company assigns its participation rights to a company that resides in a State with a more favourable conventional regime. In other words, if the Agreement with the State of residence of the assigning parent company provides for a tax residual that is higher than the one established in the Agreement with the State of residence of the new company holding the participation rights, the AFC fixes a sum of distributable reserves called “old reserves”. The sum of the old reserves corresponds to the smallest of the following: (1) non-operating assets (2) commercially distributable reserves. As concerns advance tax, the AFC hypothetically applies the regime provided for by the Agreement with the country of residence of the parent company holding the participation rights and not the regime provided for in the Agreement with the new State of residence of the new parent company.

For example, a Swiss company X SA which is held by company A, a resident of country A. The agreement between Switzerland and State A provides for a 10% advance tax residual. X SA assigns its participation rights to company B, a resident of State B, which provides for an advance tax residual of 5%. In such case, an old reserve sum is fixed by the AFC which withholds 10% of the sum stopped -upon future distributions.

Our team is available for more information on this matter.

The post Advance tax and filing procedure appeared first on Amedia Fiduciaire Suisse.

• Taxable income in euros
• Up to 99640%
• From 9964€ to 27519€14%
• From 27519€ to 73779€30%
• From 73779€ to 156244€41%
• Over 156244€45%

United Kingdom (for current tax year 6 April 2018- 5 April 2019)

• Taxable income in british pounds
• Personal allowance : up to 99640%
• Basic rate : £11851 to £4635020%
• Higher rate : £46351 to £15000040%
• Additional rate : over £15000045%

Spain (income tax rates for the year ending 31 December 2019)

• Taxable income in euros
• Up to 12450€ 19%
• From 12450€ to 20200€24%
• From 20200€ to 35200€30%
• From 35200€ to 60000€37%
• Over 60000€45%

Italy (income tax rates for 2018)

• Taxable income in euros
• Up to 15000€ 23%
• From 15001€ to 28000€27%
• From 28001€ to 55000€38%
• From 55001€ to 75000€41%
• Over 75001€43%

Germany (income tax rates 2018)

• Taxable income in euros
• Up to 9000€ 0%
• From 9001€ to 54949€14%
• From 54950€ to 260532€42%
• Over 260533€45%

Please note that these rates are before the solidarity tax (Solidaritätszuschlag) of 5,5%
Members of the church pay 8 to 9% church tax

Please note the following:

• there are regional peculiarities, like in Spain where the amount of tax varies from one “comunidad autonoma” to the other
• In some countries, like France, where couples have to file a tax return together, there are tax advantages (“quotient familial”) when the couple has children under 18 or still dependent (in education)
• the marginal tax rate in 4 of the above countries is 45% (in Italy it is 43%, so very close)
• the income tax burden looks homogeneous, but the tax charge can vary a lot from one country to the other when one takes into account the Wealth Tax (Impuesto sobre el Patrimonio in Spain or Impôt sur la Fortune Immobilière in France) or the Gift or Inheritance Taxes (not even to mention the “charges sociales” in France)

The post Personal income tax in the five most populous EU countries: a comparison appeared first on Amedia Fiduciaire Suisse.

Austria has a GDP (PPP) per capita of more than US$49,000 in 2018, making it one of the richest countries in the world. 

Austria is a member of the EU (including the eurozone and Schengen), the OECD and the WTO. Austria therefore offers the opportunity to become resident in the Schengen territory with minimal bureaucratic requirements.

In the worldwide ranking of cities based on quality of living conducted by the HR consultancy Mercer in 2018, Vienna is in first place, and has consistently been ranked among the top three in the past.

While Austria admittedly has high income tax rates, the fact that no wealth, gift and inheritance taxes are levied is often the reason for high net worth individuals to consider relocating to Austria.

TAX

Income tax

Tax rates and tax basis

An individual’s income is subject to progressive income tax, with the following rate bands applying:

• up to €11,000 0%
• from €11,000, up to €18,000 25%
• from €18,001, up to €31,000 35%
• from €31,001, up to €60,000 42%
• from €60,001, up to €90,000 48%
• from €90,001 50%

Additionally, for the years 2016 to 2020, a maximum tax rate of 55 per cent shall become applicable to income exceeding €1 million. Interest on bank accounts is subject to a flat rate of 25 per cent; interest on bonds, dividends on stocks, capital gains from financial instruments and income from derivatives are subject to a flat rate of 27.5 per cent; and capital gains from real estate are subject to a flat rate of 30 per cent.

Preferential tax regime for persons relocating to Austria

Pursuant to Section 103 of the Austrian Income Tax Act, the Austrian Minister of Finance may eliminate an additional tax burden resulting from an individual’s relocation to Austria, namely for people whose relocation to Austria serves the promotion of science, research, arts or sports and is thus in the public interest (additionally, in the case of scientists and researchers, 30 per cent of their income may be exempted from tax for five years). The Austrian Minister of Finance may prescribe such regulations as may be necessary or appropriate to carry out these provisions. In this respect, a regulation has recently been made available, which deals with certain procedural and substantive issues in connection with the above-mentioned provision.

Wealth tax

Austria does not levy a general wealth tax on all types of personal assets. 

Gift and inheritance tax

Austria does not currently levy a gift or inheritance tax. Such taxes were abolished in August 2008.

Bank confidentiality and exchange of information between tax authorities

Bank confidentiality is a highly cherished tradition in Austria and a very emotional topic for the public at large. It was introduced into statutory law in 1979. Although the provisions were originally quite strict, they have in the last few years been progressively loosened, mainly because of pressure from abroad regarding taxation. The starting point for this development was certainly the passing of the EU Savings Directive. In 2009, this was followed by the OECD’s push for facilitating the cross-border exchange of banking information upon request between tax authorities, and in 2014, by the expanded initiative to exchange such information automatically between tax authorities under what is known as the Common Reporting Standard. Finally, in 2015, as a direct result of the concessions made in an international context by granting foreign tax authorities access to Austrian banking information, the scope of Austrian bank confidentiality in a purely domestic tax context was dramatically eroded. Today, bank confidentiality in Austria pales in comparison with former times.

CONCLUSIONS & OUTLOOK

Austria, as a wealthy and sophisticated jurisdiction with a stable political system in the centre of the EU, remains a strong candidate for attracting high net worth individuals in the years to come. If you are looking for a jurisdiction where to relocate, which combines economic and political stability, a clean and safe environment and an excellent infrastructure, and which also offers various tax advantages, please do not hesitate to contact us.

The post Relocate to Austria: the advantages appeared first on Amedia Fiduciaire Suisse.

This favourable tax regime is available for “newly resident” individuals in Italy, who (regardless of their nationality or domicile) have not been tax resident in Italy for at least 9 years out of the 10 years preceding their transfer to Italy.

Please note however that Italian-source income and gains are taxable in the usual way but foreign income and gains are sheltered from Italian tax, provided the taxpayer pays an annual charge of €100,000.

The option is valid for a period of 15 years, and election for the regime may be extended to family members through the payment on their foreign income and gains of a substitute tax amounting to €25,000 per member.

Coupled with several other Italian tax incentives (like one of the lowest levels of both inheritance and gift taxes in Europe, exemptions on capital gains on certain categories of real estate and art works and a new tax regime applicable to carried interest derived by fund managers), it makes the country a very attractive destination for foreign investors and high net worth individuals.

Please note that this article is for information purposes only and shall not be construed as legal or tax advice. Please contact us for any further information.

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Indeed, after many months of a “bull run”, purchasing managers’ indices have sudenly fallen as has consumer confidence. While we remain comitted to a longer term view and believe there is no need to worry long term, we suggest volatility will increase in the coming months.

It’s Europe that is experiencing the sharpest decline in the Purchasing Managers’ Index. This development is not surprising, however, given the strong growth recorded last year in the euro area. After such a progression, this decline is to be interpreted as a return to normalisation.

In recent times, Germany, the largest economy in the Euro currency zone, and it has been the main driver of economic growth in the region. Tighter exhaust standards are putting the German automotive industry to the test. Nevertheless, this decline should last in the long run because it is a one-off problem. Of course the worries regarding Brexit and a disorderly exit from Europe is also capturing headlines as is the Italian budget , all these are adding to the current state of concern.

In the United States as well, a slowdown appears to be emerging. Given that the effects of the Trump administration’s stimulus measures (tax cuts) are beginning to fade, it’s also not a surprise. Also the results of the midterm elections make the Presidents strategy less optimal and investigations more likely.

The weakening of the economic dynamics in the main economic areas and the uncertainty as to the consequences of the commercial conflict between the United States and China is also worrying investors. Nevertheless, the fundamentals, as a whole, indicate a solid evolution of the economy.

In their individual earnings publications, American companies were less numerous than in the second quarter to fear being penalised for their commercial activities with China. It turns out, for the time being that the trade dispute between the United States and China and subsequent customs sanctions have been less heavily weighted than President Trump had indicated. This indicates that many US companies have probably been able to absorb and adapted to the current situation.

For several quarters, the operating results of American companies have been excellent. They also see the future with confidence. For these next months and for 2019 as a whole, the outlook remains unchanged. Despite already high figures in 2018, earnings growth forecasts remain high for 2019, at more than 5%.

Under these circumstances, combined with a fundamentally positive context, we believe there is a case for additional allocation to equity markets on a selective basis.

Amedia Wealth, December 2018

The post Macro view appeared first on Amedia Fiduciaire Suisse.

Information Exchange … but which one?

On September 30, 2018 and for the first time in its history, the Swiss tax administration will receive information from Foreign States applying the Automatic Exchange of Information (AEI). More concretely, the tax administration will automatically receive bank balances, interest, dividends and other gains concerning individual beneficial owners of bank accounts existing on the books of foreign banks.

Switzerland, Brazil, China, Russia, Singapore or Japan will join the EU member countries that are in the first wave of the 50 “interchange” countries.

How to regularise your situation?

The approach of this deadline should encourage many taxpayers to verify their fiscal situation and regularise any element that has been omitted through a non-punishable, spontaneous denunciation procedure. To help those wishing to benefit from this possibility, a fiscal administration service has a team dedicated to this task and has created a form simplifying the procedure which has been put online.

And what are the consequences if I do not do it?

After the deadline of September 30, 2018, the AFC will no longer be able to consider new items of income or wealth declared as spontaneous. AFC will apply sanctions for the cases where there has been a subtraction of taxes due.

If the tax elements are not declared come from States who do not apply the automatic exchange yet, the same rules will be used from September 30 of the year where information exchange concerned will take place for the first time.

If you would like additional information, please contact Amedia Fiduciary as soon as possible.

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Following my own experience moving Swiss employers, and the required opening of a “libre passage” account to hold my “2ème pilier” pension pot, it became obvious that there was scope and a need for other “players” in the French speaking part of Switzerland.

Basically there are 3 pillars which are designed to ensure retirement revenue.

Pilar 1 is called AVS which covers the vital minimum. Pilar 2 is called LPP and is a professional savings plan. This, in turn, is divided into Obligatory and Supplementary portions which are meant to maintain the standard of living to which one is accustomed once retired. Pilar 3 is the individual savings plan and can be called 3a (lie) or 3b (libre). The individual savings Pilar is designed to supplement the LPP and AVS.

The big issue facing Swiss employees is the diminishing interest rates around the world and how they are going to ensure a reasonable return on their individual pension pot… while our “hands are tied” on the obligatory portions, Swiss are not necessarily aware that up to 60% of their fortune is invested in Pension plans and a significant portion can be managed actively.

Currently the technical return on Pension pot assets is estimated to be 1.75% in 2018, that compares with a rate of 4.5% in 2007. At the same time, one would need to invest in a 10 Year Swiss Government bond to see a return of just.15% PA as of recent. In summery, Pensions are paying out more to retired people than they are collecting or earning… so how can an individual have a chance to preserve their own capital, let alone build on their capital with a chance to enjoy their retirement years.

One way may be by taking additional responsibility for your own future. At Amedia we are available to accompany you with next steps.

From the analysis of your personal circumstances through the opening of an account Libre Passage with our partner bank Gonet, we will work to complete a plan. You will be able to make a selection from managed portfolios by the governed by the law on institutional savings type OPP2.

Imagine your pension savings, invested in line with your desired risk and return profile, open in an established institution, actually working to ensure your retirement savings plan.

Looking forward to hearing from you

The post Amedia signed a cooperation agreement on individual pensions & the supplementary portions of the 2nd and 3rd pilars appeared first on Amedia Fiduciaire Suisse.

Voluntary disclosure of tax evasion, ARTICLE 175 of the LIFD (Loi fédérale sur l’impôt fédéral direct. – Swiss federal law on direct taxation) and 69 AL.3 of the LPF (Loi de procédure fiscale – Tax procedure law)

This mechanism is much less financially appealing than that reserved for beneficiaries of an estate (see Table I below), which may explain the fact that until recently, taxpayers who have not been entirely honest with the tax authorities have steered clear of this procedure, preferring to take a gamble and live by the famous French maxim “pas-vu-pas pris” (literally, “not seen, not caught”). However, today, this approach should be strongly discouraged – the Automatic Exchange of Information (EAR) revolution is well underway, and it appears that nothing can stop it. These new EAR regulations (which will mainly concern EU and OECD countries) are complex and costly to implement for banks, but it is understood that the collection of information will begin in 2017 and that the exchange process will be effective in Switzerland as of 1 January 2018.

We can therefore be sure that very few undeclared assets will escape the knowledge of the federal tax authorities. The tax authorities will have access to a very significant amount of information concerning undeclared assets abroad, and will have the power to fine or even bring criminal charges against the last die-hard secretive individuals who have not made the necessary provisions ahead of this deadline.

Where the tax authorities discover elements of income and assets that have not been declared by the taxpayer, they will impose a tax surcharge for the previous 10 years, plus default interest, as well as a fine on the taxpayer of up to 3 times the value of the unpaid taxes. The latter may also face the possibility of prosecution. The voluntary disclosure procedure enables taxpayers to avoid fines and criminal proceedings, but the tax surcharge for the previous 10 years, plus interest, will still be due.

Naturally, each taxpayer can only make a voluntary disclosure once. In addition, this disclosure will be entered into a federal register, in order to check that this is indeed the first disclosure made by the individual in question. The voluntary disclosure is also subject to three conditions:

• 1) That no tax authority is aware of the tax evasion to which the disclosure refers,
• 2) That the taxpayer cooperates fully with the authorities in order to determine the amount of tax that remains unpaid
• 3) That he or she endeavours to pay the sums that are due.

VOLUNTARY DISCLOSURE BY THE BENEFICIARIES OF AN ESTATE, ARTICLE 153A of the LIFD AND 72 AL.4 of the LPF

The tax authority may notify beneficiaries of additional tax liabilities with default interest regarding tax evasion disclosures made by the deceased. Even if the beneficiary can no longer be fined (pursuant to the decision of the European Court of Human Rights in 2004), the amount inherited from the estate can disappear in a flash, due to the fact that the tax authorities can go back for a period of 10 years prior to death.

The procedure for voluntary disclosure by the beneficiaries of an estate makes it possible to limit the period to which additional tax can be applied to the 3 years before death – an extremely favourable system which is particularly appropriate in situations in which beneficiaries wish to benefit from the assets left to them by their deceased relative.
It should be noted that the text provides for the possibility that each beneficiary may use the voluntary disclosure procedure independently of the other beneficiaries of the estate in question. However, we encourage beneficiaries not to avoid collective consultation on the strategy to pursue with regard to voluntary disclosure, as the initiatives precipitated by one or more beneficiaries could obviously deprive the others of the possibility of benefiting from this procedure. Indeed, the first of the conditions that must be met in order to benefit from the simplified 3-year additional tax liability is to ensure that no tax authority is already aware of the tax evasion that has taken place. Clearly, then, beneficiaries must consult with one another, and come to an agreement among themselves before filing the inheritance declaration.

Traditionally, the other conditions include the stipulation that taxpayers cooperate fully with the authorities in order to determine the amount of tax that remains unpaid, and that they endeavour to pay the sums that are due. For the sake of completeness, it should also be noted that the simplified 3-year additional tax liability is not applicable in the event of the official liquidation of the estate or the liquidation of the estate in accordance with bankruptcy proceedings, and that nothing in the text seems to suggest that the same beneficiary cannot benefit from the voluntary disclosure procedure for several distinct estates. Table II (below) provides a quick overview of the choices available to beneficiaries of an estate.

WHAT STRATEGY SHOULD BE ADOPTED?

When dealing with inheritance, the simplified additional tax liability system is in most cases both highly appropriate and extremely favourable for an inheritor who wishes to ensure that the estate of which he or she is a beneficiary complies with the regulations in force, with regard to the tax evasion committed by the deceased. Where necessary, he or she must simply confer with the other beneficiaries, and above all, must not delay in making a decision – once the tax authorities become aware of the undeclared assets belonging to the deceased, it will be too late!

As far as taxpayers are concerned, the number one key to a good strategy, in our view, is anticipation. The collection of information under the new EAR regulations, which will begin in 2017, means that there is very little time left for taxpayers who have evaded tax on personal income or wealth to seek advice, working closely with the bank concerned where monetary assets are concerned. In order to estimate the additional tax due, and to discover the fate that awaits the taxpayer, we recommend getting in touch with a qualified professional (a Swiss fiduciary or lawyer), in order to assess the situation and estimate the past and future costs stemming from a voluntary disclosure. In reality, additional tax liabilities can have collateral effects on the past (demands for reimbursement of social benefits that, in retrospect, were not due, for VAT payments avoided, for social welfare payments not made, etc.). Furthermore, the tax burden on the taxpayer, notably with regard to wealth, will be increased in the future, as a result of the addition of all of the elements that were previously not declared.

Accordingly, Swiss tax regularisation requires a thorough analysis of the situation by a qualified professional, who will know which other experts to consult (bankers, solicitors, etc.), providing the taxpayer with all the information he or she requires to make a fully informed decision.

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