(as of April 2012)
12.021 Agriculture Policy 2014-2017
Both EATCs will focus their attention on the future of Swiss agriculture over the coming months: with Agriculture Policy 2014-2017 (AP 14-17), consisting of amendments of the Agriculture Act and a decision on a payment schedule, the Federal Council intends to boost support for innovation in the agricultural and food sectors, further improve competitiveness and enable more targeted promotion of public services. The key component of AP 14-17 is the improved system of direct payments, which will increase the effectiveness and efficiency of the allocated funds. A total of CHF 13,670 billion has been earmarked as financial support for agriculture for the period 2014 to 2017.
The National Council EATC will hold a hearing with the stakeholders on the Federal Council’s proposal on 22 May 2012 and will proceed to consultation on the proposal after the summer session.
12.020 Alcohol Act. Total revision
On 25 January 2012 the Federal Council adopted the Dispatch on the Total Revision of the Alcohol Act. It is submitting two bills to parliament: the Spirits Taxation Act and the Alcohol Trading Act. The liberalisation of the ethanol and spirits markets will be accompanied by measures to strengthen the protection of young people and the introduction of a night time ban on the sale of alcoholic beverages. The Swiss Alcohol Board (SAB) will be merged into the Federal Customs Administration (FCA), which will subsequently be responsible for implementing the two new pieces of legislation. The CEAT-S is expected to consider the proposals in the third quarter of 2012.
12.028 Cartel Act. Modification to the Cartel Act
The revision aims to provide a better institutional basis for decisions taken by the competition authorities and prohibit particularly harmful forms of agreements between undertakings. Furthermore, it should be possible to prohibit mergers or stipulate conditions for mergers if they constitute a significant hindrance to competition which cannot be compensated by efficiency gains. The aim of the revision of the Cartel Act is to accelerate and improve procedures, which should intensify competition in Switzerland and boost the country's appeal as a location for business.
11.044 – The Federal Act on International Administrative Assistance in Taxation Matters (Tax Assistance Act)
The federal bill on international administrative assistance in taxation matters (Tax Assistance Bill) includes procedural stipulations concerning administrative assistance under the terms of the double-taxation agreement and other international agreements with a view to exchanging information concerning taxation matters. When this bill becomes law, the ordinance on assistance under the terms of the double-taxation agreement of 1 September 2010, which came into force on 1 October 2010, will no longer apply.
At its meeting on 7 and 8 November the CEAT-N completed its examination of the draft bill put forward by the Federal Council. The draft is expected to be on the National Council's agenda during the 2012 spring session.
11.043 – Taxation according to expenditure. Federal law
Both the Direct Federal Tax Act and the Harmonisation of Direct Cantonal and Local Taxes Act stipulate that foreigners who are resident but not gainfully employed in Switzerland may be taxed on the basis of their expenditure. This involves a special type of assessment of income and wealth.
Tax based on expenditure is a local political tool which is important from an economic point of view and enjoys a long tradition in Switzerland. The Federal Council would like to improve this institution in order for it to achieve greater acceptance. Specific modifications are aimed at ensuring that both local considerations and fairness are taken into account. At the same time, the legal security of the system should be increased and greater harmonisation should be achieved in federal and cantonal tax laws.
The CEAT-N will most probably examine this issue during the first quarter of 2012.
11.047 – Federal law on withholding tax. Modification (Stimulation of the Swiss capital market)
The proposed modification of the Withholding Tax Act of 13 October 1965 (WTA; SR 642.21) includes a shift from the debtor to the paying office principle as far as concerns interest on bonds and money-market securities. The Federal Council's intention with this proposal is to help reinforce the stability of the financial sector, to stimulate the Swiss capital market and to strengthen the security aspect of withholding tax.
The proposal goes beyond the regulatory aim of the "too-big-to-fail" proposal in that it includes additional objectives, namely one of national interest, through the intended stimulation of the Swiss capital market, and one concerning fair taxation, through the strengthening of the security aspect of withholding tax. All three aims could be achieved with the shift from the debtor to the paying office principle.
The CEAT-N has organised hearings on this issue and is expected to continue its deliberations during the first quarter of 2012.
11.057 – Insurance Policies Act. Total revision
The Insurance Policies Act, which is now over one hundred years old, no longer meets today's requirements. A number of pressing amendments were made in a partial revision in 2006. The total revision will overhaul existing insurance policy law and bring it in line with the new realities and the need for reasonable and workable insurance cover.