Swiss voters shocked the political system by rejecting reform plans to bring the country’s corporate tax system in line with international standards.
Tax reform, widely supported by the business community, would have removed a series of special low tax privileges that encouraged many multinationals to set up stores in Switzerland.
According to experts, the future of the Swiss tax system is now uncertain. Voting results can be a headache for companies that have funded their implementation and can discourage companies that are considering relocating to the country.
“They don’t know what [tax] Measures will be available … it’s not a very solid foundation for making investment decisions, “said Peter Weberhart, tax director at KPMG in Switzerland, in a video statement.
Switzerland has been under strong pressure in recent years from the G20 and OECD countries to wipe out the tax system. If the tax system is not changed by 2019, this country is at risk of being “blacklisted” by other countries.
According to Stefan Kuhn, head of corporate tax at KPMG in Switzerland, many voters rejected the tax reform package, fearing that the amount of revenue the government would collect could be reduced. That may lead to a tax increase for the middle class.
The current tax system provides incentives for some companies with large overseas businesses. International tax authorities have stated that the rule is equivalent to an unfair corporate subsidy.
Martin Nabil, head of the Swiss-American Chamber of Commerce, said voters may not understand the complexity of the reforms. 59% of voters rejected this measure.
“I think it’s a very bad day for Switzerland,” Navir said. “Clearly, Swiss uncertainty and credibility [system] It was a big hit. ”
Swiss officials say they will act swiftly to develop a revised tax reform proposal. Naville said he hopes new rules will be devised within the next few months.
“All stakeholders must be responsible for developing an acceptable and competitive tax system and regaining confidence in the well-known political stability that gave Switzerland such an advantage,” he said in a statement. Must be. ”
Naville has hinted that potential tax reforms in the United States and the United Kingdom could seduce Swiss-based businesses to relocate and put more pressure on Switzerland’s tax base.
CNNMoney (London) February 13, 2017 First Edition: 10:10 AM ET