FRONTIER WORKERS AND LIMITED LIABILITY COMPANIES: UPDATES FROM BERNE

The Federal Council has responded to Giorgio Fonio's interpellation regarding the measures that the federal government intends to take against the Italian state, in relation to the measures that the Italian tax authorities are taking against cross-border commuters holding Sagl (Limited Liability Companies), which we have already written about (https://www.stelva.ch/it/journal/425/fisco-indaga-su-frontalieri-titolari-di-societa-in-ticino/) and in particular on the requalification of employee income into taxable income in Italy, with significant tax consequences.

The Federal Council has not taken a clear-cut position, explaining that it is discussing the issue with the Italian government and that if Italy maintains its positions, Switzerland will demand a return or compensation of the refunds already paid for the affected taxpayers.

We await further developments.