Switzerland becomes white listed for Italian Financial Transaction Tax purposes

Swiss financial intermediaries in scope for I-FTT purposes must register and pay due FTT
The change

On 26 October 2016 the Italian Revenue Agency (Agenzia delle Entrate) has published a provision outlining that Switzerland has become whitelisted for Italian tax purpose further to amendment of the double tax treaty between Switzerland and Italy. The amendment notably foresees the agreement to exchange information and to provide assistance in the collection of tax credits, which is the driver for Switzerland’s whitelisting.

Further to this whitelisting, Swiss financial intermediaries can no longer rely on the previous treatment under the blacklisting rules, i.e. being treated as the end investor or purchaser in a transaction involving financial products subject to Italian FTT. Under this treatment, the white list financial intermediary counterpart would have charged the Swiss financial intermediary with Italian FTT on a pre-emptive basis and paid it to the Italian Revenue Agency. Although being treated as an end investor was not a substitute for FTT compliance, as a matter of fact being a resident of a black list Country provided a reasonable certainty that no audit by Italian tax authorities was ever going to take place (in the event a black list entity wanted to comply, a specific whitewashing procedure was available).

The issue

The whitelisting now leads to the situation where every Swiss financial intermediary (banks and brokers in the first place, but also asset managers, trust companies and notaries in residual cases) needs to levy and account for any Italian FTT due on transactions involving taxable financial products, which means that the intermediary has to fully comply with the duties imposed under the Italian FTT regulations. As the provision amends the whitelist with retroactive effect as of 13 July 2016, Swiss financial intermediaries will need to report taxable transactions and declare the due Italian FTT for the period since entering into force to 31 December 2016 no later than 31 March 2017 with the Agenzia delle Entrate.

The take away

Swiss financial intermediaries can no longer rely on being treated as the end investor for Italian FTT purposes. As of 13 July 2016 Swiss financial intermediaries must autonomously apply and levy any due Italian FTT to their transactions with chargeable financial instruments. It is of utmost importance that the relevant compliance procedures are implemented enabling the Swiss financial intermediary to assess the due Italian FTT and to pay it on time, i.e. no later than 31 March 2017.

Contacts:

Martin Büler
Partner, Tax&Legal
+41 58 792 43 92
martin.bueeler@ch.pwc.com

Luca Poggioli
Director, Tax&Legal
+41 58 792 44 51
luca.poggioli@ch.pwc.com

Victor Meyer
Partner, Tax&Legal
+41 58 792 43 40
victor.meyer@ch.pwc.com

PwC’s Forensics and Disputes advisory services leads in the cross border investigations area

alm_vanuard_of_disputeALM Intelligence*, the leading consulting research and advisory firm, rates PwC as an ALM Intelligence Vanguard Leader in their new report ‘Forensics & Dispute Advisory 2016.’

In the report, ALM assesses two Vanguards; Forensic Investigation and Dispute advisory. PwC is not only a leader in the Forensic Investigation Vanguard, but also in Disputes. PwC’s Disputes and litigation consulting practice has cross border capabilities in areas such as commercial, transaction and shareholder disputes as well as International Arbitration.

The report highlights that ‘PwC covers the gamut of Forensics & Disputes Advisory (F&DA) services with a breadth unlike any other. Under its Forensics practice within its Advisory group, PwC provides services around Anti-corruption, Corporate Intelligence, Cybersecurity, Emerging markets, Forensic Dispute Services, Forensic Technology Solutions, Fraud Risk Mitigation, Government Contractor Services & Export Controls, Insurance Claims, IP Rights Management & Contract Compliance, and Investigation.’

It also goes on to say that PwC leads in the cross-border investigations capability area. Coupled with more than 40 technology laboratories spread across the world, PwC is a powerful partner on the fraud and regulatory front, and also is a market leader in the cybersecurity space, again developing key analytics tools for clients.

PwC’s global Forensic Services leader, Andrew Gordon, said: “We are delighted to have been named the leading firm in cross-border investigations. This status recognises our investments in developing increasingly sophisticated data tools and building specialist teams around the world. We use technology to address the threats our clients face, delivering creative solutions that accelerate our ability to provide answers with confidence and clarity.”

*ALM Intelligence, formerly Kennedy Consulting Research & Advisory.

Please do not hesitate to contact me if you require further guidance or have questions on any of these topics.

Erwin Frank Barentsen
Director Advisory
+41 58 792 25 51
erwin.frank.barentsen@ch.pwc.com

SAP GRC Access Control upgrade & migration service

SAP GRC

What is it about?

SAP GRC Access Control 5.3 is built on a technology which does not allow extensive customising. But this is possible again with versions 10.0 and 10.1. This means that we will adapt your SAP GRC Access Control System to your needs and requirements. It’s also important to realise that new functionality such as improved firefighting, reporting and user interfaces, and the integration of new technology such as Hana or Fiori, is only provided with the latest version (10.1).
Given that version 5.3 is based on a different technology than versions 10.0 and 10.1, a migration path is required. If you plan to move from version 10.0 to 10.1, only an upgrade is required. SAP provides standard tools supporting the migration. Nevertheless, further accelerators and a proven methodology are required for ensuring data consistent and auditability / traceability.

What you get from our service

The latest release provides a wide range of new functionalities and improvements, which PwC and Xiting will combine and adapt to your organisation’s requirements. What you can expect:

service SAP GRC

Read more here.

Our approach

Our approach is tailored to your needs and split into four phases, from assess & design to operate & support. We will implement the functionalities you have already been using in addition to new functionalities as defined in the business blueprint. You’ll enjoy a smooth transition to a new system tailored to your needs.

approach SAP GRC

Read more here.

Your journey with us

Upgrading your SAP Access Control system will not only give you immediate benefits now, but will prepare you for your future journey as well.
The upgrade path will enable you with the opportunity to extend the limits and functionality of your current SAP Access Control solution. The upgrade ensure integration with new SAP solutions like Fiori and Hana for a more intuitive interface and reporting capabilities and also utilizing extended functionality available only to the solution version 10.1.
PwC and Xiting would be glad to accompany you on your journey. Thanks to our extensive network, you’ll always be up to date on the latest trends and best practices.

Financial Market Infrastructure Act (FMIA)

FINMA guidance on the postponement of certain transition periods, on equitable compliance under EMIR, and exchange of collateral

The transition periods set out in Article 129 Financial Market Infrastructure Ordinance (FMIO) and Article 58a of the Stock Exchange Ordinance (SESTO) regarding specific provision relating to trading venues and organized trading facilities as well as the recording and reporting obligations were postponed until January 1, 2018 on June 29, 2016. FINMA has issued further guidance on the following points:

Equitable compliance: (Provisional) equivalence of EMIR for the fulfillment of the obligations under FMIA

FINMA recognizes that the main obligations to be fulfilled under FMIA can be fulfilled under EMIR on a provisional basis until the corresponding obligations under EMIR are final. This permits the counterparties which are subject to the clearing obligation (Article 97 para. 1 FMIA), reporting obligation (Art. 104 para. 1 FMIA) and risk mitigation obligations (Art. 107 para. 1 FMIA) to fulfill these obligations under EMIR from the date on which they come into force, provided that the relevant conditions are met. Affected financial market participants should however keep in mind that the reporting and clearing obligation must be fulfilled through a recognized or licensed financial market infrastructure (Art. 95 let. b FMIA).

Potential extension of the deadline for the exchange of collateral (initial and variation margins)

The deadlines for the exchange of collateral (initial and variation margins) (Art. 131 para. 4 and 5 FMIO) are aligned with the corresponding deadlines under EMIR which are not yet final. This means in other words that the deadlines for the initial and variation margins under FMIA will be postponed accordingly if the initial and variation margin obligations under EMIR will kick in later than the current deadlines set forth in the FMIO.

Organized trading facilities (OTF): Postponement of deadlines and new circular

Multiple obligations related to organized trading facilities (OTF) have been postponed until January 1, 2018. These are:

  • Pre-trade transparency of trading venues (Art. 27 FMIO);
  • Post-trade transparency of trading venues (Art. 28 para. 2 to 4 FMIO);
  • IT-systems to ensure an orderly and resilient trading activity (Art. 30 para. 2 and 3 FMIO);
  • Provisions of a trading venue related to algorithmic trading and high frequency trading (Art. 31 FMIO);
  • Guarantee of orderly trading activities (Art. 40 FMIO);
  • Algorithmic trading and high frequency trading, pre-trade transparency, and post-trade transparency for securities (Art. 41 to 43 FMIO).

FINMA also plans to issue a new circular outlining its practice on the operation of OTFs by the spring of 2017.

Record keeping and recording requirements (Journalführungspflicht) as well as the reporting requirements for securities and derivatives transactions (Meldepflicht): Postponement of deadline and new circular

The deadlines for meeting the new requirements under the record keeping and recording requirements as well as the reporting requirements for securities and derivatives transactions (Art. 129 FMIO and Art. 58a SESTO) have been postponed until January 1, 2018. FINMA will also issue a new version of the circular 2008/4 “Securities Journal” reflecting the changes.

No Trade Repository has yet been licensed or recognized

FINMA confirms that as of 7 July 2016 no trade repository has yet been licensed or recognized in Switzerland. At the current time, we expect the first trade repository to be licensed no later than during the third quarter of 2016.

No Central Counterparty under FMIA has yet been licensed or recognized

FINMA confirms its plan that it will decide on the categories of derivatives subject to clearing during the recognition and licensing process of central counterparties. It has also confirmed that on July 7, 2016 FINMA has not yet licensed or recognized a central counterparty under FMIA.

If you have any further questions, please feel free to contact Günther Dobrauz, Martin Liebi, Michael Taschner or Simon Schären.

 

Geldwäschereiprävention: die neuen Pflichten für Händlerinnen und Händler

Ab 2016 werden die Geldwäschereisorgfaltspflichten auf Unternehmen und Berufe ausserhalb des Finanzbereichs ausgedehnt.

 

Die Gesetzesänderung mit Bezug zur Geldwäschereiprävention, welche in Januar 2016 in Kraft tritt, schreibt für die natürlichen und juristischen Personen, welche gewerblich mit Gütern handeln und dabei Bargeld ab einem Betrag von CHF 100’000 entgegennehmen, strengere Regeln vor. Diese Bargeldzahlungen unterliegen neu einer verschärften Abklärungspflicht, und die Händlerinnen und Händler,  z.B. Immobilien-, Kunst- oder Edelsteinhändler, müssen, in Bezug auf diese Zahlungen, Sorgfaltspflichten wie Finanzintermediäre einhalten, ohne dass sie selber über eine Bewilligung für die Tätigkeit als Finanzintermediär verfügen.

Erfahren Sie mehr in unserem Informationsblatt:

Geldwäschereiprävention: die neuen Pflichten für Händlerinnen und Händler

Unsere Experten – Ihr Kontakt:

Susanne Hofmann

PwC | Legal Compliance Leader Switzerland | Director
Birchstrasse 160 | Postfach | CH-8050 Zürich
Email: susanne.hofmann@ch.pwc.com

Michèle Hess

PwC | Assurance Director
Birchstrasse 160 | Postfach | CH-8050 Zürich
Email: michele.hess@ch.pwc.com