What part of "No!" don't the Brussels bureaucrats of the European Union understand?
For several years the high tax bureaucrats at EU headquarters in Brussels, have complained loudly that low Swiss corporate taxes are some how "unfair competition." Of course, the politicians of high tax EU member countries (France, Germany) would never think of lowering their own taxes in order to compete. They would rather attack the low tax Swiss and smear them as "unfair."
Indeed, studies have confirmed Switzerland to be "a tax paradise" for corporations and holding companies registered there. The country is highly rated by tax experts for its favorable, low tax rates and overall ease of paying taxes
Last week representatives from Switzerland and the EU met in Bern for a third round of "dialogue" on the EU's opposition to low Swiss cantonal company taxes. Under the Swiss federal system each canton sets its own corporate tax rates, and those low rates have attracted thousands of foreigners who have incorporated their businesses in Switzerland.
Because the Swiss are Swiss, they no doubt will continue to meet politely with the EU taxocrats, repeating that cantonal taxes are a matter of Swiss sovereignty and none of the EU's business. The Swiss deny that the 1972 Free Trade Agreement between Switzerland and the EU has anything to do with cantonal company taxes.
The Swiss Federal Council has consistently rejected the EU's interpretation, considering it to be unfounded, and has consequently refused to enter into negotiations. They correctly state that since Switzerland is not an EU member nor part of the common market, EU tax rules do not apply.
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