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On Monday, the Economic Commission of the Council of States will discuss the controversial tonnage tax. This stipulates that shipping companies based in Switzerland will no longer be taxed on the basis of their profits, but on the basis of their transport capacities. The new law would provide tax credits worth millions to shipping companies.
What was not known until now: The drafting of the law was shaped by the company that would probably benefit most from it: the Mediterranean Shipping Company (MSC), based in Geneva. This is evident from detailed research by the magazine “Reflexion”.
MSC is the largest shipping company in the world. It operates 800 ships, has 150,000 employees and an estimated profit of 30 billion francs in 2022. According to the balance sheet, MSC owners Gianluigi (83) and Rafaela Aponte (78) are among the five richest in Switzerland. The new tonnage tax could save the company millions.
Documents obtained by “Reflexion” with the help of the disclosure law show: Even before the law really gained momentum in the federal government, MSC owner Gianluigi Aponte met with then Finance Minister Ueli Maurer (73, SVP) for a personal conversation in the spring of 2020. The meeting was organized by financial director Nathalie Fontanet (59, FDP) from Geneva.
Five days before the meeting, an employee of Maurer wrote to the Federal Tax Authorities (FTA): “It cannot be ruled out that tax issues will also be discussed in passing. We would therefore like to ask the FTA to also provide representation.”
There are no documents about the meeting itself. Maurer’s Finance Department (EFD) later assured that the tonnage tax was not an issue at this meeting. However, the emails from “Reflexion” show that the FTA accelerated work on the tonnage law shortly after the meeting between Maurer and Aponte. At some point, the file turned “from an unloved child into Ueli Maurer’s project,” an insider told the investigative magazine.
At the same time, MSC armed itself politically. The company left the well-connected trade association STSA and joined the little-known shipping association Swiss Shipowners Association. The new Secretary General was Olivier Straub, lobbyist and tax expert at MSC. The company literally ‘hijacked’ the association. E-mails show that MSC lobbyist Straub communicated directly with the tax authorities through his association position.
The so-called flag requirement was discussed for weeks starting in December 2020 – a central point of the proposal. And how this can be set up as cost-effectively as possible for companies. This is evident from the email flow between the Tax Authorities and the shipping association. The flag requirement regulates which companies can benefit from the tonnage tax and under what conditions.
Switzerland could take regulatory action through the tonnage tax and impose requirements on companies – for example in the field of labor law or the environment. Trade unions, the left and the Greens therefore support a strict flag requirement. But not the MSC – that would be a problem for them. The reason: most of the company’s ships sail under flags of convenience from Liberia or Panama. This means that the company does not have to comply with European labor legislation.
No wonder that the Swiss Shipowners’ Association, led by Secretary General Straub, rejected all proposals to link the tonnage tax to a flag requirement. Ultimately, the Tax Authorities stepped up their game and wrote to the shipping association: “Simply removing all flag-related conditions seems (…) to be the most reassuring approach.”
It is accordingly enshrined in the current draft law. All ships whose countries have signed the four major maritime transport treaties can benefit from the tonnage tax. It is more or less a formality, as almost all states with a flag fall under these conditions.
The Tax Authorities reject the accusation against ‘Reflexion’ that it has drawn up a law with and for MSC. Shipping company MSC simply said: “We do not believe that MSC should answer the questions.” “Reflect” should provide this to the shipping association. And when asked about the role of MSC, the association simply writes: The introduction of the tonnage tax is an important goal for all members of the association.
In May 2022, the Federal Council ruled in favor of the tonnage tax – despite previous discussions about whether it was constitutional at all. Due to the unequal treatment of different sectors. The National Council followed suit at the end of 2022 and also approved the tax. It is a victory for the bourgeois parties; the SP, the Greens and the GLP were against it.
Now the tonnage tax has passed the final hurdle in the Council of States. After Stöckli put on the brakes last fall and postponed the deal. Civilian politicians have cited further clarifications on the financial implications and constitutionality as reasons. Equal tax treatment is a constitutional principle. And the tonnage tax would come around that. (oko)
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
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