Swiss Miss?

[No Elephants]

Insight: Swiss, facing EU tax pressure, ponder how to attract firms
By Emma Farge and Caroline Copley

GENEVA | Tue Dec 18, 2012 8:07am EST

(Reuters) - "Happy Taxation" is a 2011 book by Pascal Broulis, finance minister of the Swiss canton of Vaud and celebrant of the low taxes that distinguish Switzerland. But as times get tougher, discontent about Swiss tax breaks is mounting.

Cash-strapped foreign governments have already chipped away at the secrecy that allows rich individuals to store tax-free funds in Swiss bank accounts. Now Europe's governments have turned the spotlight on the incentives Switzerland offers companies.

Swiss official company tax rates of around 21 percent compare with 33 percent in France and 29 percent in Germany, according to a 2011 survey by accountants KPMG; often companies in Switzerland actually pay much less. Denknetz, a left-wing Swiss think tank, estimates Switzerland's special tax regimes deprives other countries of up to 36.5 billion francs ($39 billion) in tax revenue each year - almost double the amount Spain's government raised in corporate tax in 2011.

Brussels has demanded that the country, which is home to nearly 24,000 "tax privileged" companies from online retailer eBay to Japanese automaker Nissan, scrap special tax breaks on some company profits.

http://www.reuters.com/article/2012/12/18/us-tax-swiss-europe-idUSBRE8BH0J020121218

In elementary school, I learned that Switzerland was neutral and would not engage in wars. Even then, I was non-violent, so I had a very favorable, albeit very naive, view of Switzerland. Later, I learned how Switzerland had behaved during WWII.

[formercia]

1. I think the Swiss are coming to terms with Economic Reality

They could get away with the ruse in the Past,but now that funds are transmitted electronically for the most part, it becomes much easier to audit the flow of funds and see where the imbalances are. The best way to stop Money Laundering and other financial criminal activity, is to restrict access to the banking networks of Countries that fail to follow international standards. Money that used to go into the accounts of wealthy criminals can now be taxed and the funds used for the general welfare.