Parliament agrees to align with OECD tax transparency rules
The Swiss parliament has decided to eliminate anonymous shares in private companies amid international pressure to increase transparency around taxation.
This content was published on
2 minutes
swissinfo.ch/urs
Following several rounds of discussions, both chambers on Wednesday agreed to abolish so-called bearer shares which can be used to help owners to dodge taxes by hiding their identities.
The reform foresees that bearer shares will be converted into registered name shares within 18 months. Exceptions are allowed for listed companies.
He added that further legal amendments might become inevitable a few years from now to ensure Switzerland stays in line with international rules on transparency and the exchange of tax information.
The government had tried since 2005 to convince parliament to adapt Swiss law, while in 2015 the OECD said it considered Swiss attempts to tighten rules on bearer shares insufficient.
However, parliament on Wednesday also threw out a proposal to grant legal assistance in cases of stolen tax data. It was argued that Swiss jurisdiction was adequate to handle international requests.
Limited impact
Peter V. Kunz, professor of economic law at Bern University, has downplayed the impact of scrapping bearer shares in Switzerland.
He told the Swiss news agency, Keystone-SDA, that the move is a relatively minor step, as most companies only issue named shares.
Kunz also said the elimination of bearer shares would not really help in the fight against money laundering or tax evasion.
“This is mere window dressing. There are enough other possibilities to launder money without using bearer shares,” he is quoted as saying.
Though most of major firms only issue named shares, it’s nevertheless estimated that tens of thousands of other Swiss companies will be affected by the reform.
The move comes ten years after Switzerland was forced to dismantle banking secrecy by agreeing to send information about customers’ accounts to foreign tax agencies.
More
More
Swiss say goodbye to banking secrecy
This content was published on
The international convention on the automatic sharing of banking information entered into force on January 1.
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Switzerland hosts meeting on tax transparency
This content was published on
The five-day gathering of the Global Forum peer review group is to examine the implementation of so-called group requests and the issue of the identification of beneficial owners, according to the State Secretariat for International Financial Matters. “This meeting confirms that Switzerland supports the efforts of the international community regarding tax transparency,” the statement says.…
This content was published on
“It’s already clear that Switzerland is a favourite whipping boy internationally,” says Peter V. Kunz, professor of economic law and comparative law at the University of Bern. “It has made considerable progress in certain areas in recent years, but because progress is slower than in other countries, the finger is still being pointed at Switzerland,”…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.