Taxation in Switzerland

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The Swiss parliament approved a corporate tax overhaul on Wednesday that it hopes will stave off the danger of it landing on a European Union blacklist of uncooperative tax havens.

In response to international pressure, the current system is to be phased out replacing preferential tax rates with lower universal ones in the hope that these companies will stay.

More than 84% of voters have renewed the government’s right to tax its citizens and companies for another 15 years. This is a unique feature of Switzerland’s political system of direct democracy and federalism.

Switzerland said on Wednesday it would start sharing information on the activities of multinationals in its territory with other countries in 2020, joining an international push to fight tax evasion.

A Swiss man accused of spying on German officials who were hunting tax cheats goes on trial in Frankfurt on Wednesday, in a convoluted case that has strained ties between Bern and Berlin.

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