(October 6, 2014)

On October 6, 2014 the Swiss Government issued a press release stating that the Swiss Federal Council is rejecting the popular initiative titled “Stop the tax privileges for millionaires (abolition of lump-sum taxation)”.

According to Swiss Federal Councillor, Eveline Widmer-Schlumpf, the reason for the rejection is that the initiative diminishes Switzerland's appeal as a location and restricts the cantons' financial autonomy.

The Swiss Government states that there is fierce international tax competition for wealthy and highly mobile people. Various states use special arrangements to persuade these people to relocate there. According to the Swiss Government the option of expenditure-based taxation allows Switzerland to strengthen its position in international tax competition. The Swiss Federal Council therefore sees expenditure-based taxation as an important location policy instrument of economic significance that should be maintained.

For more information, click here to be forwarded to the press release as published on the website of the Swiss Federal Department of Finance (FDF), which will open in a new window.

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