Documentation requirements for Swiss firms with a link to Liechtenstein
On 1 February 2018, the Swiss Federal Court decided that a Swiss company had not furnished adequate proof of the services entered in the accounts of a company with its registered office in Liechtenstein and thus had not provided substantiation in business respects. In the opinion of the Federal Court, higher standards of proof and stricter disclosure duties are applicable to service relations with companies in Liechtenstein. Although the judgement refers to a case in 2013, the tax authorities apply this judgement to current cases, even if the line of argumentation of the Federal Court is no longer valid in our view. Companies with cross-border service relations between Switzerland and Liechtenstein are thus advised to pay special attention to the documentation of services.