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EU wants “movement” in tax dispute

A second round of talks in Brussels between Switzerland and the European Commission concerning a dispute over corporate taxes has yielded no progress.

Discussions ended with a “clarification” of positions but no solution.

The head of the European delegation said on Wednesday that the commission now expects the Swiss to make some “movement” on the issue before another meeting in April.

The European Union is concerned over foreign-owned holding companies flocking to Switzerland to take advantage of low corporate tax rates.

It has stated in the past that tax privileges granted by some Swiss cantons to foreign companies are incompatible with a 1972 free trade agreement between Switzerland and the rest of Europe.

The tax advantages in question concern foreign holding companies whose headquarters are in Switzerland but which make profits abroad.

Switzerland has repeatedly refused to negotiate with the EU over the issue. The government says that corporate taxes are a cantonal issue and are not covered by the trade agreement.

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