2011
The final withholding tax or how to reconcile tax conformity with the protection of financial privacy
Michel Dérobert, Secretary General of the Swiss Private Bankers Association
Switzerland recently signed two agreements - with Germany and the UK - with a view to introducing a (final) withholding tax which will be collected, in principle from 2013, on assets belonging to residents in these countries, deposited in Swiss banks. It represents a significant step in the implementation of a policy, wanted by the Federal Council and the financial centre, which consists of establishing a framework whereby the clients of Swiss banks can honour their tax obligations without compromising their personal privacy.
Regulation: should the financial centre be redesigned?
Edouard Cuendet, Secretary General of the Groupement des Banquiers Privés Genevois
The debate on regulation and over-regulation has been around for some time and is not limited to the banking and financial sector. In Switzerland and many other countries across the world, a large number of economic activities are subject to heavy and restrictive legislation. For example, in the medical and pharmaceutical sector or food industry. In the financial sector, regulation must protect the savers and the investors, in the drugs and food industries, the patients and consumers. The logic is irrefutable. Consequently, the discussion must be concerned less with the principle of the regulatory structure than its density and depth.
2010
The financial crisis, taxation and the banks
Michel Y. Dérobert, Secretary General of the Swiss Private Bankers Association
Now three years old, the financial crisis began in mid-summer 2007. Despite periods of remission, it is still not under control and has even spread in some eurozone states. States which have got themselves into serious debt, particularly (but not only) bailing out their banks will be tempted to make the latter pay the political price for this. Three kinds of reaction can be observed: regulatory, budgetary and fiscal. Financial supervisory reforms have been announced in several countries but the international dialogue has been essentially limited to declarations of intent. Up until now, the fight against tax evasion is probably the only area where the crisis has generated – under the auspices of the G20 – tangible decisions on a universal scale. For Switzerland – one of the leading international financial centres and a world leader in wealth management – these developments present a real challenge. The country has already adopted a variety of regulatory measures and modified its tax cooperation policy. In this field, the Swiss banks have developed innovative propositions.
2009
Plan de relance genevois : le contribuable reste le chaînon manquant
(only in French)
Edouard Cuendet, Secretary General
Certains ont pensé un temps que Genève serait épargnée par la grave crise économique et financière qui a déferlé sur la planète. Compte tenu du fait que les principaux secteurs de l’économie genevoise sont tournés vers l’exportation (finance, horlogerie, chimie fine, tourisme), il était illusoire de penser que nous sortirions indemnes du passage de cette lame de fond. La présente Lettre explore les mesures de relance prises à Genève.
Exchange of tax information: and the consequences?
Michel Y. Dérobert, Executive Director
On March 13th 2009 Switzerland announced that, in the future, it will be willing to apply the OECD's Model Tax Convention standard for the exchange of information. This decision was taken practically simultaneously by all the other countries having not yet implemented this standard. It will modify the coverage of banking secrecy with regard to fiscal matters, at least for the nationals of countries with which Switzerland will have amended the double taxation treaties to include the exchange of information. This article retraces the circumstances which led to the Federal Council's change of policy, explaining the consequences it will have as well as discussing the accompanying measures which will need to be adopted for the financial centre to remain attractive.
New migration: Switzerland caught between brain gain and fear of losing its identity
Xavier Comtesse, Director Romandie, Avenir Suisse
The Swiss voters having again displayed their clear support in favour of the bilateral approach with the European Union and the free movement of persons, we asked Xavier Comtesse, head of the French-speaking section of the "Avenir Suisse" think tank, to write about their publication dedicated to new immigration, entitled "Die neue Zuwanderung – die Schweiz zwischen Brain-Gain und Überfremdungsangst".
2008
Infrastructure: time to act
Thierry Oppikofer, journalist, executive manager of "Tout l'immobilier"
Geneva's citizens love to be told that their "quality of life" is unanimously recognized worldwide. Rather than this slightly hazy concept, which is used as freely as "sustainable development", the term "competitiveness" may be more appropriate; this being the one generally adopted by the experts appointed to weigh up the respective advantages and disadvantages of the leading financial centres. The City of London, for example, commissions an independent agency to conduct a survey, the Global Financial Centres Index, which is published twice a year. Geneva ranks very well in this: taking sixth position behind London, New York, Singapore, Hong Kong and Zurich. Its weakness is infrastructure: housing, transport and amenities. Are we really that bad? And does the answer to all our ills really lie in the regeneration of the hitherto industrial area of la Praille-Acacias-Vernets?
Revising the tax laws : Pandora's box
Xavier Oberson, Lawyer and Professor of Law at the Geneva University
The affair of the DVD stolen from the subsidiary of a Liechtenstein bank, then bought by the German secret services for a king's ransom was only the prelude to an orchestrated attack on Switzerland and her banking secrecy in tax matters. The criticism, initially launched by a number of German politicians, was then embraced by others, including the leaders of the Swiss Socialist Party. At the centre of the debate lies the distinction Switzerland makes between tax evasion and tax fraud. We asked a highly regarded expert on the subject – Professor Xavier Oberson, of Geneva University – to examine the consequences if the distinction were to be abolished. He arrives at the conclusion that questioning it would lead to an overall revision of Switzerland's tax system.
Business and politics: dialogue is essential
Michel Y. Dérobert, Executive Director
It is now nearly ten years sinc Peter Böckli, the lawyer and professor from Basel Expressed his belief that the governing spheres of the business and political worlds were drifting inevitably apart. In particular , he pointed out that Switzerland's lay system (the so-called "système de milice") which holds the country together looked set to crumble under the effects of macrotrends outweighing the people's wishes. So, where do westand today? What can be Done to maintain the cohesion between the business sector and the state? What about the finacial center and its ties with the political environment? These are some of the questions this edition of the "Lettre" will try to answer.
2007
Hedge funds and private equity : The stakes for Switzerland
Michel Y. Dérobert, Geneva Private Bankers Association
"Hedge funds" and "private equity" : two terms that have become an integral part of the financial world's basic vocabulary. However, in some countries, they have recently attracted the attention of politicians, occasionally inciting their harsh comments. The question of how to regulate these alternative investment vehicles - hedge funds in particular - has also been raised, but as yet there is no consensus. Nevertherless, the fact remains that the general public's knowledge of what these terms really mean is still lacking.
The aim of this edition of "La lettre" is to outline, in broad terms, one of the most dynamic sectors in the financial markets and the stakes involved for Switzerland.
2006
In search of privacy
Charles H. Pictet, Member of the Council for the protection of individual rights, Geneva
Matthias Kummer, Attorney, Kummer Public Affairs, Berne
Safeguarding customer privacy is a key aspect of Swiss banking culture. The global erosion of individual privacy is a sign of our times and has ramifications far beyond the banking sector.
Healthcare service providers, lawyers, pastors, scientists and engineers, the media and the state need to address this issue from their various viewpoints and with varying degrees of urgency. It primarily affects the individual, but more importantly the repercussions can be felt throughout our liberal society.
The Council for the Protection of Individual Privacy was set up two years ago in Switzerland. The Council covers a wide range of relevant issues and disciplines and regards itself as an advocate of privacy.
The "COSA-initiative" : Don't play with fire!
Geneva Private Bankers Association and Jean-Pierre Béguelin, Chief Economist Pictet & Cie
Fiscalité des entreprises : être compétitif ou dépérir
Michel Dérobert, Geneva Private Bankers Association
(Document in French or in German only)
2005
Free movement of persons: the real stakes
Michel Y. Dérobert, Geneva Private Bankers
On 25th September 2005, the Swiss people will have to once again give their opinion on a subject concerning their relations with the Europen Union. It will not only be the extension of the free movement of persons Agreement that depends upon this decision. It is the very viability of the bilateral approach that will be at stake.
Economie et finances publiques: le paradoxe genevois
Edouard Cuendet, Geneva Private Bankers
(Document in French or in German only)
2004
The Bilateral Agreements II and the financial centre
Michel Y. Dérobert, Geneva Private Bankers
Having refused to join the European Economic Area in 1992, Switzerland has since pursued its relationships with the European Union (EU) via a so-called bilateral path, i.e. by negociating sector-specific agreements. While a second round of bilateral negociations has just been completed, the European question is once more at the centre of the political debate, especially as the enlargement of the EU also engenders consequences for Switzerland.
Overregulation is always dangerous for the economy
Xavier Comtesse, Avenir Suisse
Michel Y. Dérobert, Geneva Private Bankers
Generally and by international comparison, Switzerland still offers a relatively favourable environment to economic expansion. This is how the IMD assessed it in its latest annual report on the competitiveness of nations. However, if we take a closer look at the numerous statistics that make up this report, we come to realize that this has been true for a very long time but, of late, is becoming less and less so.
2003
Tax competition: is the OECD threatening our sovereignty?
Franz Blankart, Limited partner, Mirabaud & Cie
Henri Schwamm, Honorary Professor of Economics, University of Geneva
In 1998, with the publication of a policy report entitled "Harmful Tax Competition - an emerging global issue", the OECD launched a crusade aimed mainly at financial activities and other services from geographically mobile activities.
Ethics and money : what is required of the banking profession
Jacques Rossier, Managing Partner, Lombard Odier Darier Hentsch & Cie
In our moralizing world, the word ethics is used and abused. Ethics, according to one of the many definitions that can be found in the dictionary, is "the discipline dealing with what is good and bad and with moral duty and obligation" .
2002
Taxation of savings. What will happen in the home straight?
Michel Y. Dérobert, Geneva Private Bankers
Who would have thought that the taxation of savings would have captured the public's interest to such an extent? Day after day this topic, in principle not very likely to draw the crowds, has hit the deadlines and given rise to heated debates. The reason is that it lies at the heart of negotiations between the EU and Switzerland on the quesiton banking privacy.
The European Union's threat of sanctions. From the WTO standpoint.
Henri Schwamm, Honorary Professor of Economics, Geneva University
Last September, during their second series of bilateral negotiations with Switzerland, the European Commission treatened Switzerland, for the first time, with various sanctions should it refuse to comply with its request for the exchange of information.
The Swiss financial centre - no to satellization!
Pierre Mirabaud, Managing Partner, Mirabaud & Cie
The "Bilateral II negotiations" between Switzerland and the EU touch the very foundations of our rule of law.
I'm going to vote "yes", what about you?
Ivan Pictet, Manging Partner, Pictet & Cie
In recent weeks the daily press has been full of reader's letters, most frequently urging people to vote "no" to Switzerland joining the UN, when they go to the polls on 3rd March 2002.
The UN, Swiss neutrality and political tactics
Franz Blankart, Limited Partner, Mirabaud & Cie
For some politicians, the vote on 3rd March is not about the UN but about smiting the federal councellor, Joseph Deiss with a a defeat that will lead to this resignation or non-r-election.
2001
Tax competition: harmful or healthy?
Michel Y. Dérobert, Geneva Private Bankers
Taxing savings in Europe
Michel Rousset, Lombard Odier Darier Hentsch & Cie
Capital gains tax and Swiss banks
Edouard Cuendet, Geneva Private Bankers
Chiselled in the stone pediment above the entrance to the US Internal Revenue Services building in Washington DC, visitors can read the following axiom, "Taxes are what we pay for civilized society".
Stating the case for Swiss exception. Integration policy between Switzerland and the EU.
Jacques Rossier, Managing Partner, Lombard Odier Darier Hentsch & Cie
Among European nations, Switzerland remains an exception in many respects with its multiculturalism, neutrality, independence and direct democracy.
