Introduction of defensive measures targeting business relations or ownership structures in or linked to non-cooperative tax jurisdictions
On 31 March 2021, the Federal Cabinet approved the Draft Bill for the Tax Haven Defence Act, which provides for the introduction of defensive measures with regard to business relationships or share holdings tied to certain non-cooperative tax jurisdictions. The new law is designed to implement measures negotiated and approved at EU level with respect to jurisdictions on the EU list of non-cooperative countries and territories in taxation matters (so-called “blacklist”). This new legislation aims to encourage states and territories that do not meet recognised standards in the areas of transparency in tax matters, unfair tax competition and the implementation of BEPS minimum standards to take steps towards implementing and complying with international standards in taxation. To this end, “defensive measures” are designed to discourage individuals and companies from continuing or establishing new business relations with those states and tax jurisdictions.