Swiss warned on tax practices

Switzerland has six months to improve its tax practices or it will be blacklisted by the European Commission

That’s a warning given by a European Commissioner for Taxation and Customs, Algirdas Semeta, to the print media in Switzerland.

While maintaining that the EU is not against tax competition, Semeta stressed that this must be fair. The EU code of conduct requires domestic and foreign companies to be treated the same, Semeta continued, emphasizing that the problem in Switzerland is that some Swiss cantons give preferential tax treatment to foreign firms compared to domestic corporations.

He says if the EC’s expectations aren’t met some EU countries could adopt “defensive measures.”

The Commission had wanted Switzerland to agree to an automatic exchange of information, similar to the FATCA law it’s signed with the United States.

But Switzerland has so far been opposed to such an agreement with the EC.