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During its meeting on 9 June 2017, the Federal Council discussed the tax policy reform agenda and adopted the parameters for tax proposal 17 (TP17) in the process. It instructed the Federal Department of Finance (FDF) to submit a TP17 consultation draft to it by September. The Federal Council expects to discuss the dispatch on TP17 in spring 2018, together with the dispatch on reforming the taxation of spouses. It will take the decision on a possible staggered schedule for the proposals at that time.
Swiss voters rejected the third series of corporate tax reforms (CTR III) in February 2017. Tax proposal 17 takes account of the referendum outcome and respects tax federalism. Switzerland's appeal as a tax location should be boosted and international acceptance should be restored. TP17 pays special attention to safeguarding the tax receipts of the Confederation, the cantons, the cities and the communes.
When discussing the parameters for TP17, the Federal Council largely took on board the 1 June 2017 (see Media releases by the Federal Council) recommendations of the steering body comprised of representatives of the Confederation and the cantons. The cantons' share of direct federal tax is to be increased to 20.5% instead of 21.2% as was recommended by the steering body. The FDF will prepare a TP17 consultation draft based on those parameters by September.
Within the framework of its tax policy reform agenda, TP17 is a priority for the Federal Council. Against the backdrop of the federal budget's current financial situation, the Federal Council will thus address their financing and the timetable going forward when the two dispatches are discussed.