During its meeting of November 11, 2015, the Swiss Federal Council adopted a revision of the Tax Administrative Assistance Ordinance (Verordnung über die internationale Amtshilfe in Steuersachen). The new provision defines in greater detail the possibility of passing on the costs of international administrative assistance to the person or financial institution concerned, as provided for in the Act.

According to a press release published on the website of the Swiss Federal Department of Finance in this respect, the new provision of the Tax Administrative Assistance Ordinance will come into force on January 1, 2016. Under the Tax Administrative Assistance Act, the Federal Tax Administration can pass on costs if they are extraordinarily high and the person concerned or the information holder contributed substantially to the costs generated through their inappropriate behaviour. The new provision of the Tax Administrative Assistance Ordinance describes what is to be deemed an extraordinarily high sum and lists the components of the costs that can be passed on.

According to the new Article 2a, Paragraph 1 costs are considered extraordinarily high when they relate to requests that have caused an above-average effort, especially difficult to work or were urgent.

Article 2a, Paragraph 2 subsequently arranges that the costs consist out of: 

• Direct labor costs;
• Direct costs relating to the workplace;
• A 20% surcharge over the direct labor costs to cover overhead costs;
• Direct costs relating to materials used and operational costs;
• Other costs incurred.

With respect to other costs incurred Article 2a, Paragraph 3 subsequently arranges that these consist out of:

• Travelling costs and the costs of transportation;
• Costs incurred with respect to the assistance provided by third parties.

Click here to be provided to the draft version of the the amendments made to the Verordnung über die internationale Amtshilfe in Steuersachen, as available on the website of the Swiss Federal Department for Finance, which will open in a new window.

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