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Zurich drops tax breaks for wealthy foreigners
Published in Saudi Press Agency on 09 - 02 - 2009


Though the biggest issue of Sunday's Swiss
referendum was the open market and free movement agreements with
Europe, other issues were also at stake, including a proposal to
scrap a unique tax break for wealthy foreigners in Zurich, according to dpa.
Local media reported Monday that some 53 per cent of voters in
Zurich, the financial hub of the Alpine country, voted to do away
with a system that enabled wealthy foreigners to pay taxes as a lump
sum, based on their home expenses and not their income.
While those in the canton who benefited from the tax deal were
estimated to have numbered just slightly over 130 people, observers
said it was the first sign of willingness to implement such changes
in the tariff system.
Some who voted in favour of the change, which was supported by
left-leaning groups, have felt the loophole was too kind to the
ultra-wealthy while others did not appreciate the differentiation
between citizens and foreigners.
Those in favour of keeping the lump sum deal felt that scrapping
it might chase away the wealthy foreigners who spend their money in
Switzerland. Theo Mueller, a German who made his fortune on dairy
products, threatened to pack his bags and leave the country if the
proposal passed.
Many celebrities, going back to film legend Charlie Chaplin, have
taken up residence in Switzerland, enjoying its tax laws. Currently,
stars such as Tina Turner, Shania Twain and Michael Schumacher
discovered the joys of Swiss living, along with over 4,000 other
wealthy individuals with foreign passports who enjoy special tax
deals.
Other cantons in the confederation still have tax systems for the
wealthy.
The Swiss-style direct democracy sees voters go to the polls about
four times a year, to vote on national and local issues. The previous
referendum was held in November last year.
The right-wing Swiss People's Party (SVP) had forced the poll on
free movement in Europe and used controversial advertising to try and
garner a majority against the agreements.
One SVP poster showed three aggressive black crows pecking away at
a map of Switzerland, meant to highlight how foreigners, particularly
from new European Union members Romania and Bulgaria, would take away
jobs from citizens and raise crime rates.
The campaign failed and some 60 per cent of voters supported the
government-backed proposal to further open up the neutral and
historically isolated country.
A cartoon in the Geneva Le Temps newspaper, whose front page lent
support to the "yes" vote, showed on Monday three black crows
comfortably nested on a scarecrow representing the SVP, a contented
look in their eyes, while in the background a Swiss border crossing
was being opened to a bus.


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