Swiss voters reject the overhaul of corporate tax

Voters in Switzerland shocked the political establishment by rejecting a reform plan that would have brought the country's corporate tax system in accordance with international standards.

The tax reforms, which have been largely supported by the business world, would have suppressed a set of special low -tax privileges which had encouraged many multinational companies to settle in Switzerland.

Experts say that the future of Switzerland's tax system is now not clear. The result of the vote could create headaches for companies that had implemented their implementation and dissuade companies that envisaged a move in the country.

“They don't know what [tax] Measures will be available … It is not a very solid basis for making investment decisions, “said KPMG tax chief Peter Uebelhart in KPMG in Switzerland.

Switzerland has undergone intense pressure from the G20 and OECD countries in recent years to clean its tax system. The country is likely to be “on blacklist” by other nations if it does not change its tax system by 2019.

Many voters have rejected the fears' tax reform package to reduce the amount of income received by the government, according to Stefan Kuhn, responsible for corporate tax in KPMG in Switzerland. This could have resulted in tax hikes on the middle class.

The current tax system gives preferential treatment to certain companies with large foreign operations. International tax authorities claim that the rules constitute unjust subsidies to businesses.

Martin Naville, head of the Swiss-American Chamber of Commerce, said it is possible that voters do not understand the complexities of reforms. The measures were rejected by 59% of voters.

“I think it's a very bad day for Switzerland,” said Naville. “Obviously, uncertainty and credibility in the Swiss [system] took a huge blow. “”

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The Swiss authorities say that they will move quickly to create a modified tax reform proposal. Naville said he hoped that new rules will be designed in the coming months.

“All stakeholders must now assume responsibility for developing an acceptable competitive tax regime and taking over the credibility concerning the famous political stability which gave Switzerland such an advantageous position,” he said in a statement.

Naville suggested that potential tax reforms in the United States and the United Kingdom could encourage companies to move to Switzerland, exerting more pressure on the tax base of Switzerland.

CNNMONEY (London) Posted on February 13, 2017: 10:10 am he