Voters in Switzerland shocked the political establishment by rejecting the reform plan that would bring the corporate tax system in the country in line with international standards.
The tax reforms, which were widely supported by the business community, have removed a set of privileges for low tax that encouraged many multinationals to create a store in Switzerland.
Experts say the future of the tax system in Switzerland is now clear. The result of the vote can create a headache for companies that were banking to implement, and deterred companies that were considering moving to the country.
“They do not know what [tax] Peter Ophertart, KPMG tax head in Switzerland, said in the video statement that the measures will be available … and this is not a very strong basis for making investment decisions.
Switzerland has been subjected to severe pressure from the G20 and OECD countries in recent years to clean its tax system. The country is exposed to the risk of a “black list” by other countries if its tax system is not changed by 2019.
Many voters rejected the tax reform package due to fears that it may reduce the amount of revenue gathered by the government, according to Stephen Kon, the head of the corporate tax in KPMG in Switzerland. This may lead to high -class taxes.
The current tax system gives a preferential treatment for some large foreign operations. International tax authorities say that the rules amount to unconfirmed companies.
Martin Navil, head of the Swiss -American Chamber of Commerce, said it is possible that voters have not understood the complexities of reforms. The measures were rejected by 59 % of the voters.
“I think it is a very bad day for Switzerland,” Navil said. It is clear that uncertainty and credibility in Swiss [system] I took a tremendous blow. ”
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The Swiss authorities say they will move quickly to create a modified tax reform. Navil said he hoped that new rules will be placed during the next few months.
He said in a statement, “All stakeholders now have to take responsibility for developing an acceptable competitive tax system, and restore credibility with regard to the famous political stability that gave Switzerland this useful position,” he said in a statement.
Navil hinted that possible tax reforms in the United States and the United Kingdom can entice Swiss companies to move, which increases pressure on the tax base in Switzerland.
CNNMoney (London) It was first published on February 13, 2017: 10:10 AM Et