Jacquemet two more years at Genève-Servette

Jacquemet two more years at Genève-Servette

The Geneva right and economic circles launched their campaign on Tuesday against the cantonal initiative of the far left “Suppress the privileges of large shareholders”, which will be up for vote on March 12. They fear a considerable loss of attractiveness of the canton in tax matters.

The Centre, the PLR, the UDC, the MCG as well as the Fédération des entreprises romandes (FER Genève), the Geneva Chamber of Commerce, Industry and Services (CCIG) and the Geneva Real Estate Chamber (CGI) do not want not this text which aims to tax all the dividends received by “large shareholders”. Persons who own at least 10% of the shares of a company are targeted.

The initiative was rejected without a counter-project by the majority of the Grand Council. According to opponents, the current situation which provides for reduced taxation of dividends makes it possible to avoid penalizing companies, in particular SMEs, from the effects of excessive economic double taxation. This mechanism exists elsewhere in Switzerland and in all OECD countries, they note.

Bad target

This initiative must be fought all the more, “because Geneva is already the canton which exploits its fiscal potential the most”, recalled PLR deputy Alexandre de Senarclens, quoted in a joint press release. According to Philippe Morel, independent deputy (ex-PLR) and MCG candidate for the Council of State, “the initiative is mistaken in its target by allegedly targeting large shareholders”.

“It is the entrepreneurs who hold family companies and who are active there who will suffer the harmful effects of this text”, warns Mr. Morel. For Delphine Bachmann, MP for the Center and candidate for the Council of State, this initiative “attacks Geneva’s SMEs and their jobs head-on, which would harm the attractiveness of Geneva and risk reducing the canton’s tax revenues”.

Privileges

This initiative was launched by the far-left organization Résistons!. According to its authors, the measure, which would affect approximately 1,600 Geneva taxpayers, should bring in an additional 120 million francs per year to public authorities. It aims to restore tax justice by fighting against undue privileges.

Like the majority of the Grand Council, the government rejected this text believing that it would reintroduce economic double taxation, as was the case before the second federal corporate tax reform accepted in 2019.

This article has been published automatically. Source: ats

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