Taxes

BEPS describes the exploitation of international tax laws by corporations to shift profits and minimize their tax burden. The OECD combats such tax avoidance strategies with guidelines and transparency measures.

The basic principles of tax sovereignty in Switzerland protect citizens through fair tax collection and laws. Violations of these principles can be legally challenged.

From March to December 2020, the federal government waived default interest on certain taxes. Cantons have extended deadlines for tax returns.

Accounting separation suffices for catering establishments to claim the reduced VAT rate for meal deliveries. However, services such as take-away are subject to the standard tax rate if there are facilities for on-site consumption.

Ferrero Schweiz AG had to make substantial back tax payments because it mistakenly applied the reduced VAT rate when importing Kinder Surprise eggs. According to the Federal Court, the product consists of three parts, which is why the normal tax rate of 7.7% applies.

To simplify the complex individual valuation of inventories, there are methods such as FIFO, LIFO, and the average cost method, which yield different financial results. FIFO values based on the oldest costs, LIFO on the most recent costs, and the average method based on an average of the acquisition costs.

The indirect partial liquidation is the prohibited sale of a company with non-operational assets for tax base reduction. It is treated as taxable capital income, not as tax-free capital gain.

Art. 127 BV sets the basic principles of taxation, including tax design and collection principles. It also prevents inter-cantonal double taxation and clearly regulates tax obligations.

Although associations in Switzerland do pay taxes, they receive various facilitations, including tax exemptions under certain conditions. They benefit from special association tax rates and are partially exempt from value-added tax.