Insights

The new Swiss financial market regulation has been in force since the beginning of 2020. What are the initial experiences and findings of this change in practice? What are the major challenges for asset managers, investment advisors, representatives and fund management companies? Veronika Britt, Senior Manager in Audit Financial Services at Grant Thornton Switzerland/Liechtenstein, discussed the implementation of the FIDLEG and FINIG in an interview with the B2B editorial team, and advises independent asset managers to be well-positioned within the framework of the new regulatory conditions, with regard to the instruction system and risk management, and to conduct a limited audit.

On June 26, an interview with Dr. Shqiponja Isufi, Head Audit Indusries Switzerland of Grant Thornton Switzerland/Liechtenstein, was published in the Wirtschaftregional. In the interview, she discusses her career as a partner and auditor, family cohesion, the corona crisis and the 1st August fireworks display.

The coronavirus crisis has placed Swiss companies under enormous economic pressure. According to a survey carried out by the Zurich University of Applied Sciences (ZHAW), one in six SMEs currently view bankruptcy as a probable outcome. The term “distressed M&A” is often thrown around in the context of acquisitions of companies with a high illiquidity or over-indebtedness risk, and this is something that many companies and investors view negatively. However, despite risks that are clearly present, a well-timed crisis acquisition or divestment can be advantageous for all parties involved.

The Federal Act on Tax Reform and AHV Financing (TRAF; Bundesgesetz über die Steuerreform und die AHV-Finanzierung – STAF) was approved with the popular vote of 19 May 2019. This gave cantons the option of granting tax breaks for research and development, provided certain conditions are met. The patent box and the increased deductions for research and development are the two most important tax-planning instruments in this regard.

In the battle against profit shifting and base erosion, the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU), as well as their member states, have continuously stepped up the pressure on zero- and low-tax countries by introducing what are known as grey and black lists. In particular, this has increased requirements in the fields of substance, anti-abuse provisions and exchange of information in tax matters.

This article sets out four key areas of your tax provision that could be affected by the impacts of COVID-19. More specifically we focus on how government support in the form of tax incentives and tax relief might change previous assessments that were made applying IAS 12 ‘Income Taxes’ (IAS 12). A key point to be mindful of is that any one of the following may be applicable if interim financial statements under IAS 34 ‘Interim Financial Reporting’ (IAS 34) are being prepared.

From the 2019 tax year onwards, Liechtenstein holding companies will be subject to tax offsets in the area of equity interest deduction if the subsidiary is not fully financed with equity, i.e. the equity of the holding is less than the carrying amount of shareholdings.

As the impact of a novel strain of coronavirus (COVID-19) continues to unfold around the world, those individuals responsible for preparing financial statements and approving them for issue need to be cognisant of not only what has happened and is happening at the reporting date and the time the financial statements are approved, but also what is likely to happen next.

The novel coronavirus (COVID-19) pandemic is spreading around the globe rapidly. The virus has taken its toll on not just human life, but businesses and financial markets too, the extent of which is currently indeterminate. Entities need to carefully consider the accounting implications of this situation.

Durch die zunehmende Ausbreitung von Covid-19 rückt der Schutz, die Gesundheit und die Sicherheit der Mitarbeitenden stärker in den unternehmerischen Fokus denn je. Um die Belegschaft ausreichend zu schützen und den Empfehlungen des Bundes nachzukommen, sind viele Unternehmen dazu übergegangen ihr Arbeitsmodell umzustellen – meist mit ausgesprochen geringer Vorbereitungszeit. Die Arbeit im «Homeoce» bietet sich unter den Umständen der Covid-19-Krise in vielen Fällen als gute Übergangslösung an – birgt für viele Unternehmen aber auch eine Vielzahl neuartiger Risiken, welche nicht ausser Acht gelassen

Located at the heart of Europe and a member of the European Economic Area (EEA), Liechtenstein serves as a hub for multinational corporations in many industries. Thanks to its long-standing history and competitive legislation, Liechtenstein is home to many banks, insurance undertakings, wealth managers and family offices. Especially in the areas of asset protection and wealth management, Liechtenstein has been able to maintain a competitive edge.

Due to a number of tax law amendments, significant amendments to the Liechtenstein tax law came into force on 1 January 2019. With reference to the 2019 tax return, have therefore compiled a checklist below with an overview of the most important changes and their effects. Companies subject to tax in Liechtenstein are advised to consider the implications of these changes in their preparations for their tax return, and to take them into account when preparing their annual financial statements.

With the rising impact of COVID-19 being seen worldwide, all industries will face significant disruption to their supply chain, workforce and cashflow. The right response will depend on the specific circumstances you and your business face. However, when experiencing significant stress or distress, we recommend you focus everything you do around the management of cash.

The Swiss federal council announced to waive late interest on overdue tax payments for corporate tax payers. The following tax are covered: Federal income tax, Value Added Tax/ VAT, customs, special consumption taxes (mineral oil tax, heavy vehicle tax, automobile tax, tobacco tax, etc.) that become due between March 1, 2020 and December 31, 2020.

We also support you in the corona crisis - Organizational information In the context of the COVID 19 pandemic declared by the World Health Organization and the information provided by the Swiss Federal Council for the protection of the population, we would like to keep you informed about the response of Grant Thornton Switzerland/Liechtenstein to the public health situation.

The spread of the Coronavirus is impacting businesses around the world. Entities need to carefully consider the accounting implications of this situation. This IFRS Alert considers the impact of the Coronavirus on 31 December 2019 year ends.