1 EXECUTIVE MASTER IN INTERNATIONAL TAXATION (LL.M.) OF THE UNIVERSITY OF NEUCHÂTEL, SWITZERLAND SWITZERLAND S DOMESTIC TAXATION OF COLLECTIVE INVESTMENT SCHEMES 2011
2 COURSE CONTENT Collective Investment Schemes (CISs) have over the past two decades become one of the most important investment vehicles for small investors compared to direct investments and offer considerable advantages such as liquidity and diversification at a relatively low cost. This seminar addresses mainly to the taxation of CISs in Switzerland without focusing on international aspects like the application of Double Tax Conventions (DTCs). Regardless the introduction of the new tax regulations as per 1 January 2009, many uncertainties and remaining questions still exist. For instance, the controversial issue on the carried interest and performance fees has not at all been solved. At the end of this seminar, we try to analyze the decisive factors from a tax perspective for Switzerland in order to become a leading and worldwide known fund jurisdiction, this in comparison to other fund jurisdictions such as Luxembourg. BIOGRAPHY Lic. iur. Roland A. Pfister, EMBA Roland A. Pfister studied law at the Universities of Neuchâtel and Granada. After the completion of his law degree, he worked for an international law firm in Belgium and a leading investment bank in Zurich, and then joined the tax department of one of the Big Four accounting firms in Switzerland. In 2008, Roland A. Pfister started his doctoral thesis in international tax law while working at the University Liechtenstein, where he teaches National and International Tax Law. During that time, he obtained additionally an Executive MBA in Wealth Management and was a visiting researcher at the Harvard Law School. In 2011, he started working as tax advisor of Tavernier Tschanz in Geneva. Further, he lectures for the International Tax Program (LL.M.) of the University of Neuchâtel, for the International Tax Program (LL.M.) of the Universidad Torcuato Di Tella in Buenos Aires, for the International Tax Program (LL.M.) at the Brazilian Institute of Tax Law (IBDT) and for the Society of Trust and Estate Practitioners (STEP). In the context of the OECD and the Italian Council of Ministers, he wrote the Swiss report for the IBFD on "Residence of Individuals under Tax Treaties and EC Law". His main areas of expertise include Swiss, Liechtenstein and international tax law for individuals and corporations as well as collective investment schemes, trusts and foundations.
3 REFERENCE LIST (not exhaustive) ALTENBURGER, Peter R. (1996/1997): Taxation of Swiss-based investment funds and certificate holders, in: ASA 65, 1996/1997, p. 87 et seq. ANDERMATT, A. (2007): Die Swiss Limited Partnership Ein konkurrenzfähiges Investmentvehikel?, in: SJZ, 2007, p. 481 et seq. BAKER & MCKENZIE (2007): Recht der kollektiven Kapitalanlagen, in: Baker & McKenzie, Zurich, BONGAARTS, Paul J. M. / ED, Lynne J. (1997): The taxation of Investment Funds : General report, 1997, in: CDFI, vol. 82b, 1997, p. 1 et seq. BURGY, M. / SCHERER, M. (1997): Die Besteuerung von Anlagefonds : Landesbericht Schweiz zum 51. IFA-Kongress, 1997, in: CDFI, vol. 82b, 1997, p. 795 et seq. BÜRLI-BORNER, Sandra (2003): Anlegerschutz bei kollektiven Kapitalanlagen in der Schweiz, thesis, Zurich, HASENBÖHLER, Franz / KÜHNE, Armin / LENGAUER, Daniel / AMSTUTZ, Therese / IMWINKEL- RIED, Michaela / DÖMER, Philipp (2007): Recht der kollektiven Kapitalanlagen: Unter Berücksichtigung steuerrechtlicher Aspekte (editor: Franz Hasenböhler), Zurich, HESS, Toni (2001): Die Besteuerung der Anlagefonds und der anlagefondsähnlichen Instrumente sowie deren Anteilsinhaber in der Schweiz, thesis, Zurich, HEUBERGER, Reto (2009): Kollektive Kapitalanlagen mit direktem Grundbesitz, in: Basler Kommentar - Kollektivanlagengesetz, 2009 (editors: Rolf Watter, Nedim P. Vogt, René Bösch, François Rayroux and Christoph Winzeler), Basel, HEUBERGER, Reto / OESTERHELT, Stefan (2010): Collective Investment Vehicles in International Tax Law: The Swiss Perspective, in: Intertax 38, 2010, p. 31 et seq. KAPALLE, Urs (2009): Interne Sondervermögen, in: Basler Kommentar - Kollektivanlagengesetz (editors: Rolf Watter, Nedim P. Vogt, René Bösch, François Rayroux and Christoph Winzeler), Basel, KAPALLE, Urs (2009): Investmentclubs, in: Basler Kommentar - Kollektivanlagengesetz (editors: Rolf Watter, Nedim P. Vogt, René Bösch, François Rayroux and Christoph Winzeler), Basel, KÜHNE, Armin (2008): Collective Investment Schemes regulations in Switzerland, in: Wirtschaftsrecht KPMG (editors: Armin Kühne, Markus Schunk, Astrid Keller), Zürich, OESTERHELT, Stefan (2009): Transparente kollektive Kapitalanlagen, in: Basler Kommentar - Kollektivanlagengesetz (editors: Rolf Watter, Nedim P. Vogt, René Bösch, François Rayroux and Christoph Winzeler), Basel, OESTERHELT, Stefan / WINZAP, Maurus (2008 & 2009): Besteuerung kollektiver Kapitalanlagen und ihrer Anleger: Titel I, in: FStR 4, 2008, p. 266 et seq. OESTERHELT, Stefan / WINZAP, Maurus (2008 & 2009): Besteuerung kollektiver Kapitalanlagen und ihrer Anleger: Titel II in: FStR 1, 2009, p. 25 et seq. OESTERHELT, Stefan / WINZAP, Maurus (2008 & 2009): Besteuerung kollektiver Kapitalanlagen und ihrer Anleger: Titel III in: FStR 2, 2009, p. 115 et seq. REICH, Philippe (2007): Vom AFG zum KAG - Der schielende Blick auf die EU, in: Recht der kollektiven Kapitalanlagen, Bern, 2007, p. 9 et seq.
4 ROBERTS, George E. (1914): The Investment Fund, Harvard University, STAFI (2008): Arbeitsgruppe Hedge-Fonds und Private Equity, in: Public Discussion Draft, WEIDMANN, Markus (2009): Besteuerung der intransparenten Kapitalanlagen (SICAF, Investmentgesellschaft und Anlagestiftung), in: Basler Kommentar - Kollektivanlagengesetz (editors: Rolf Watter, Nedim P. Vogt, René Bösch, François Rayroux and Christoph Winzeler), Basel, VIITALA, Tomi (2005): Taxation of investment funds in the European Union, thesis, Netherlands, SOURCES (not exhaustive) Swiss Federal Act on Collective Investment Schemes of 23 June 2006 (RS ). Ordinance on Collective Investment Schemes of 22 November 2006 (RS ). Circular Letter No. 24 of 1 January 2009 issued by the SFTA concerning the Swiss withholding tax and stamp duties. Circular Letter No. 25 of 1 January 2009 issued by the SFTA concerning the taxation of CISs and their investors. Federal tax administration 16 April 1991, praxis federal taxes nr. 3, Art. 26 n. 3 Withholding Tax Act. Federal tax administration 29 March 2007, praxis federal taxes nr. 2, Art. 21 para. 1 lit. a Withholding Tax Act.
5 INTRODUCTION Monday, Time Course content Professor/Lecturer Hours Room Introduction Objective of the seminar Course contents and structure of the seminar From the Federal Act on Investment Funds to the Federal Act on Collective Investment Schemes History Influence from the developments in the EU Objective of the new regulations Scope and exceptions Direct investments versus investments trough Collective Investment Schemes Contractual Funds (CF), Investment Companies with Variable Capital (SICAV) and Limited Partnership for Collective Capital Investments (L.P.) Income/Profit Taxes and Net Wealth/Capital Taxes B. Taxation at the Level of the Investor Stamp Taxes A. Securities Issuance Tax B. Securities Transfer Tax Withholding Tax B. Taxation at the Level of the Investment Contractual Funds, Investment Companies with Variable Capital (SICAV) and Limited Partnership for Collective Capital Investments (L.P.) with Direct Real Estate Investments Income/Profit Taxes and Net Wealth/Capital Taxes B. Taxation at the Level of the Investor Stamp Taxes A. Securities Issuance Tax B. Securities Transfer Tax Withholding Tax B. Taxation at the Level of the Investment Investment Companies (SICAF) Income and Profit Taxes and Net Wealth/Capital Taxes A. Taxation at the Level of the SICAF B. Taxation at the Level of the Investor Stamp Taxes A. Securities Issuance Tax B. Securities Transfer Tax Withholding Tax A. Taxation at the Level of the SICAF B. Taxation at the Level of the Investment The ratio legis of the place of effective management in Lic. iur. Roland A. Pfister, EMBA 4 -
6 Switzerland in comparison to the place of effective management within fund structures Advantages and Inconveniences of the Swiss fund jurisdiction compared to the Liechtenstein und Luxembourg jurisdictions End of the lecture Monday, Time Course content Professor/Lecturer Hours Room CASE 1: Distributing versus Accumulating Swiss Collective Investment Schemes CASE 2: Tax treatment of Foreign Collective Investment Schemes for Swiss tax purposes CASE 3: Foreign Collective Investment Schemes become resident for Swiss Withholding tax purposes CASE 4: Swiss Collective Investment Scheme applies the affidavit procedure CASE 5: Swiss Holding Company invests in Swiss Collective Investment Schemes CASE 6: Participation reduction and Swiss Collective Investment Scheme CASE 7: Reimbursement of Swiss withholding tax on distributions on Swiss Collective Investment Schemes CASE 8: Reimbursement of Swiss withholding tax by Swiss investors investing through a transparent foreign Collective Investment Schemes in Swiss securities CASE 9: Swiss Collective Investment Schemes with direct Real Estate Investment CASE 10: Carried Interest and Performance Fees CASE 11: Debt funding (leverage) model: Carried interest in proportion to investment CASE 12: Wealth Structuring with Collective Investment Scheme and Usufruct Agreement Excursus: The Double Tax Convention to Collective Investment Schemes End of the lecture Lic. iur. Roland A. Pfister, EMBA 4 -
7 CONTACT DETAILS Lic. iur. Roland A. Pfister, EMBA
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT THE GRANTING OF TREATY BENEFITS WITH RESPECT TO THE INCOME OF COLLECTIVE INVESTMENT VEHICLES (ADOPTED BY THE OECD COMMITTEE ON FISCAL AFFAIRS ON 23
Asset Management Luxembourg, your location of choice Seizing opportunities in Luxembourg This publication is exclusively designed for the general information of readers only and does not constitute professional
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