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One of the affected communities is Cadempino, near Lugano. Like Bioggio and Vezia, the local municipality has to pay taxes to the Kering group. Sergio Vecchi, city councilor and CFO of Cadempino, confirmed an article about it in the Ticino newspaper “La Regione” to the Keystone-SDA news agency.
However, Vecchi underlines that it is not only tax returns that put the municipalities under pressure, but above all, the relocation of the operation center to Italy. As a result of the restructuring implemented since 2019, municipalities have lost a large part of their tax revenues.
186 million euro debt in Italy
The municipalities of Ticino now owe the fact that taxes also have to be repaid to the Italian financial supervisory authority. This prompted an investigation into Kerin, including fashion brands Gucci and Bottega Veneta.
According to the Italian newspaper “Il Corriere della Sera”, it was made public at the beginning of April that the luxury goods group had to pay 186m euros to the Italian tax authorities for its “informal workplace” in Italy. During the criminal investigation, the Milan Public Prosecutor found that the two company headquarters in Switzerland would play a “secondary role” and therefore taxes had to be paid in Italy.
As a result, the three affected municipalities of Ticino have to repay some of the taxes paid in Switzerland. City councilor Sergio Vecchi explains that he is not allowed to say how high the amounts due are. However, the obligation to pay back impacts his community slightly less than the skeptical head of finance Bioggio and Vezia. The reason: Cadempino has partially reassured itself by raising the tax rate from 60 percent to 65 percent already in 2020.
millions of losses
It is clear that the tax loss due to the relocation of the operational headquarters is very high and as a result the municipalities are already under pressure. Vecchi says that by 2020, Bioggio, Cadempino and Vezia will each collect between eight and ten million Swiss francs in tax. As a result of the group’s restructuring from 2019, the three municipalities will continue to earn around ten percent of that amount.
The canton of Ticino is also affected by tax deficits. As the head of the responsible department explained when asked by Keystone-SDA, the cantonal tax authority cannot comment on specific cases. But as a rule, large companies are informed at an early stage when they move their headquarters and can then take this into account in the budget. (SDA/smt)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
