1 / 10

IFA bilateral UK/Swiss meeting Swiss treaty anti abuse provisionals CFC May 10 / 11, 2012

IFA bilateral UK/Swiss meeting Swiss treaty anti abuse provisionals CFC May 10 / 11, 2012. Historic overview of Swiss anti-abuse rules. 1951 Art. VI Abs. 2 DTT-US 51 1962 BRB 62 and circular letter 62 1966 Art. 14 DTT-F 1966 Art. 9 Abs. 2 lit. a (i) DTT-NL 1971 Art. 23 DTT-D

iolana
Download Presentation

IFA bilateral UK/Swiss meeting Swiss treaty anti abuse provisionals CFC May 10 / 11, 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IFA bilateral UK/Swiss meetingSwiss treaty anti abuse provisionals CFCMay 10 / 11, 2012

  2. Historicoverview of Swiss anti-abuserules • 1951 Art. VI Abs. 2 DTT-US 51 • 1962 BRB 62 and circularletter 62 • 1966 Art. 14 DTT-F • 1966 Art. 9 Abs. 2 lit. a (i) DTT-NL • 1971 Art. 23 DTT-D • 1976 Art. 23 DTT-I • 1978 Art. 22 DTT-B • 1996 Art. 22 DTT-US 96 • 1988 Circularletter 1999 • 2003 New Art. 23 DTT-D • 2008 Art. 3 DTT-UK, conduitarrangement, subsequentlyused in a number of newtreaties • 2010 Circularletter 2010

  3. Anti-abuserules • arranged- and maintainedrules • prohibitive tests • ownership test • forceddividenddistribution • baseerosion test • subject to tax clause • exclusion of entities / tax regimes • holdingperiod

  4. Anti-abuserules • concept of beneficialownership • bona fide clauses / safeharbourrules • activity test • stock exchange test • holding test • derivativebenefit test

  5. BRB 62 / CL 62 and CL 99 activity test no stock exchange test yes no pure holding test yes no mixedholding test no yes Swiss owned and controlled yes no minimumdividendpayment Art. 47 Abs 1 lit. b VStG yes yes baseerosion test respected no yes no no treatyabuse, treatyprotected treatyabuse, no treatyprotection

  6. Art. 22 DTT USA 96- Limitation on benefits corporation ownership test no stock exchange test no activity test yes yes no holding test yes no limitedderivativebenefit test yes no treatyprotectionbased on judgement yes yes no no treatyabuse, treatyprotected treatyabuse, no treatyprotection

  7. Legal basis of antiabuserules

  8. Overview of Swiss treatyanti-abuseprovisions Swisss EU savingdirectives (Art. 15 § 1) DTT -US 96 (Art. 22) DTT CH-NL (Art. 9 § 2 lit. a (i)) DTT CH-USA (Art. 22) DTT CH-D (Art. 23 § 1) DTT CH-GB(Art. 3 § 1 lit. l) BRB 62 / CL 1962 / CL 1999 DTT CH-GB (Art. 3 § 1 lit. l) DTT CH-A(Art. 28 § 7) DTT CH-F(Art. 14) DTT CH-F(Art. 14) DTT CH-Chile(Protocol to Art. 10-12) DTT CH-Chile(Protocol to Art. 10-12) DTT CH-Mexiko(Protocol to Art. 10-12) DTT CH-Mexiko(Protocol to Art. 10-12) DTT CH-B (Art. 22) DTT CH-I (Art. 23) BRB 62 / CL 1962 / CL 1999

  9. Swiss CFC rules • Switzerland has no codified CFC rules similar to United States, United Kingdom, Germany, France etc. • Switzerland has no limitation of the dividend received exemption for dividends derived from passive or low taxed subsidiaries • Switzerland however does qualify Siwss controlled passive offshore Companies as Swiss tax resident if actual management and control is executed in Switzerland

  10. Thank you for your attention

More Related