How healthy were hospital finances in 2016?

The Swiss healthcare sector is increasingly dynamic and competition-driven, with growing economic incentives. Our analysis of financial information from Swiss hospitals reveals that too many acute hospitals are not yet profitable enough.

On average the situation at psychiatric care facilities looks slightly better. Against this backdrop, many hospitals and clinics face major challenges when it comes to funding investments in the long term. Added to this is the fact that new healthcare delivery models, changing roles and digital technology will come to dominate the healthcare landscape as we approach 2030. Hospitals will have to be agile and open to innovation to be able to withstand this pressure and flourish.

Download an excerpt of the study alongside with analyses in interactive format on The complete study is available in German and French.

If you have any questions, do not hesitate to reach out to us. We look forward to hearing from you.


Patrick Schwendener, CFA
PwC | Director | Deals | Valuation & Modelling | Healthcare
Office: +41 58 792 15 08 | Mobile: +41 79 816 69 10

Philip Sommer
PwC | Director | Consulting
Office: +41 58 792 7528 | Mobile: +41 76 516 1741

FATCA Certification: Extension of Deadline and Draft Certification Texts Published

On 16 March 2018, the Internal Revenue Service (“IRS”) published the FATCA Responsible Officer certification texts on its website (in draft form). Additionally, the IRS extended the deadline for the FATCA Responsible Officer certification. Please refer to the following link for access to the draft FATCA certification texts as well as the notice regarding the deadline extension.

The IRS also announced that the IRS’s FATCA Certification Portal (“IRS Portal”) will not be available until July 2018 (at the earliest). Based on the newly provided information, we understand that the IRS will grant FATCA Responsible Officers an extension of at least three months (as per the activation date of the IRS Portal) for the FATCA Certification. This means that the FATCA Certification deadline will be extended from 1 July 2018 to 1 October 2018 (assuming the IRS Portal is activated on 1 July 2018).

Furthermore, the IRS published different draft certifications texts for the various Financial Institution categories (e.g., Reporting Model II FFI, Local FFI, etc.). An initial review of the draft certification texts indicates no unexpected surprises in terms of the content or scope of the FATCA Certification.

As we continue to analyze the certification texts, we will actively post any new and relevant information. In the meantime, please feel free to contact us in case of any questions.


Bruno Hollenstein
Partner, Operational Tax
+41 58 792 43 72

Melanie Taosuwan
+41 58 792 4249

Artificial Intelligence & Project Management: Beyond human imagination!

12. April 2018 – An event by PMI Switzerland Chapter and PwC Switzerland

Around 200 years ago the industrial revolution changed society for good. Today, another revolution is under way, with potentially even farther-reaching consequences.

Experts are predicting that Artificial intelligence (AI) in industry will change everything about the way we produce, manufacture and deliver. Cognitive computing, machine learning, natural language processing: these different terms have emerged as the technology has progressed in recent years.

What they all encapsulate is the idea that machines could one day be taught to learn how to adapt by themselves, rather than having to be spoon-fed every instruction for every eventuality. Now, according to many, that day has arrived. AI will change the world.

At this event, Marc Lahmann and Manuel Probst will show how AI is set to change project management practice. They’ll also be explaining how project managers can prepare themselves to stay relevant in a fully integrated, automated and predictive project management world.

Agenda –  12 April, 2018
18:00 Registration
18.30 Presentation
19:30 Q&A
20:00 Networking Apéro

Event Language: English

Professional Development Units: 2
– Leadership
– Strategic & Business Management
– Technical Project Management

Please be aware that at the event photos of the audience are made and published on the PMI Switzerland homepage as well as on Facebook. The event may also be live broadcasted over Facebook. With your attendance you accept these conditions.

Event fee discounts: If your are PMI-CH member, please log in with your PMI-CH member account at and enter the event from there in order to benefit from the membership discount.

Cancellation policy: 100% refund is possible for a ticket if cancelled 5 days before the event.



Marc Lahmann
Director and Leader Transformation Assurance
+41 58 792 27 99

Manuel Probst
Senior Manager Transformation Assurance
+41 58 792 27 62

PwC’s 2018 Global Economic Crime and Fraud Survey: Should Swiss companies be worried?

PwC’s Global Economic Crime and Fraud Survey 2018 reveals that 49% of global and 39% of Swiss organisations experienced economic crime in the last 24 months.

Could this mean that the problem is diminishing? Or are Swiss organisations simply not aware they have already fallen victim to economic crime?

In this blog post we will be examining the true nature of the threat and exploring whether companies be taking smarter measures to combat economic crime.

Does an apparent decline in fraud reflect the true story?
Despite a number of recent high profile fraud cases globally, PwC’s Global Economic Crime Survey suggests that the problem isn’t proliferating in Switzerland. The percentage of Swiss organisations who have experienced fraud in the last two years has decreased from 41% in 2016 to 39% in 2018. This figure looks even more positive when compared with the global (49%) or western European (45%) results. But is the result really that good?

We believe it isn’t. The survey data reveals some disconcerting facts.

Bribery and corruption are increasingly on the radar. In 2018, 27% of the Swiss respondents reported that they had been asked to pay a bribe, up from 9% in 2016. One in five respondents (20%) believe that their firms lost an opportunity to a competitor who paid a bribe within the last 24 months, up from 11% in 2016. While this shows growing awareness of, and confidence in acknowledging bribery and corruption, it also suggests that companies have to become even more alert to the threat of the problem and its implications in terms of competitiveness.

Secondly, the mean direct loss attributable to each incident of fraud in Switzerland was almost CHF 10 million – more than five times the global figure. While this may be due in part to the size of the Swiss economy and the prominence of banking and financial services sector– a particularly attractive target for fraudsters – it demonstrates that this is not a trivial problem. The size of monetary damage is significant.

Fighting fraud blindfold, or with eyes wide open?
While the lower fraud level reported in Switzerland may be due to an effective legal framework and law enforcement system, it could also reflect a temptation for organisations to overestimate the effectiveness of their systems and controls. Only one in three (33%) Swiss respondents performed a general fraud risk assessment over the two-year survey period which is substantially less than respondents globally (54%). Against this backdrop there’s a considerable risk that economic crime will go unnoticed and unreported, especially if an organisation doesn’t have access to management reporting concerning fraud.

Fraudsters down but not out, and moving quickly with the times
Swiss respondents reported that asset misappropriation (51%) and cybercrime (44%) were the two most common types of fraud experienced by their organisation with the latter also being perceived as a significant threat in the future. In order to be adequately prepared, organisations need to keep track of changes in the overall fraud risk landscape and the fact that Swiss respondents recognise cybercrime as the most significant risk going forward is encouraging.

However, our survey – both globally and in Switzerland – suggests that there’s still a failure to recognise the true nature of the threat, especially with growing business and consumer digitisation, the increasing sophistication of attacks, and heightened data security expectations amongst stakeholders. As the latest digital technologies help fraudsters become more strategic in their goals and more sophisticated in their methods, companies urgently have to make cybersecurity – the mitigation of cybercrime – a boardroom priority.

Unlike other types of fraud, cybercrime is a means to commit other types of fraud rather than being a stand-alone offence. Three in ten Swiss respondents suffered disruption to their business processes after having been the victim of a cyber-attack. More than a quarter of Swiss respondents (28%) were a victim of extortion and more than a fifth (23%) reported that a cyber-attack was used as a conduit to commit asset misappropriation against their organisation.

Efforts have to be more intelligent and better coordinated
While the 2018 survey shows that Swiss firms are taking cybercrime seriously, it also suggests that they need to work harder to be in line with global standards. Best practice organisations have adopted a ‘three lines of defence’ model, dividing responsibilities between functions that own and manage risk, those that oversee or specialise in risk management and those that provide independent assurance. It’s important to ensure that each of these functions also adequately addresses cyber risks.

In reality, only 54% of Swiss respondents have an operational cybersecurity programme, 5% below the global average and 7% below the average for Western Europe. Overall the global survey reveals serious blind spots when it comes to recognising the specific risks of fraud and economic crime. The trick is to recognise these blind spots before any fraud incident takes place. While it’s encouraging that 92% of Swiss firms expect to either significantly increase (6%), increase (25%) or maintain (61%) the amount of funds used to combat fraud, the issue is more about how these funds are actually spent. Presently, the stumbling block is often a lack of coordination and a failure to see the big picture.

The areas of a business that investigate fraud, manage fraud risks and report to the board or regulators are often disjointed and siloed. If each department builds a programme based on their own perception of fraud, operational gaps will eventually arise. So it’s vital to ensure all stakeholders understand the big picture of fraud risk management and how their own function fits into it. For global companies, establishing a centralised fraud detection and investigation function is a very good starting point.

And for any organisation, we can suggest four golden rules of effective fraud prevention:

Instant takeaway: four steps to fight fraud

  • Recognise fraud when you see it
  • Take a dynamic approach
  • Harness technology
  • Invest in people, not just machines

Follow these rules of thumb and you’ve already increased your chances of navigating an increasingly complex economic crime landscape. If you want to find out more, check out PwC’s Global Economic Crime and Fraud Survey 2018, and the deep dive into the Swiss findings ((link)), or contact us for a more in-depth conversation about how to tackle fraud and economic crime.

Manage VAT risk and gain valuable business insight with VATwatch

What’s the problem?

Being in control of your VAT data is becoming more crucial than ever. This stems from the fact that the tax authorities could have more information about your company’s VAT operations than you do. How is this possible?

It’s down to the growing complexity of the indirect tax compliance and control framework and the emergence of new reporting requirements globally. In response to these developments, tax authorities are no longer conducting sample checks, since they can use instant access to a company’s ‘raw’ accounting data and scan them to assess its VAT liability.

If you don’t have proactive control processes to review your transactional data and take action before this information is transmitted to the tax authorities, the consequences can be severe: more VAT audits, and increasingly complex questions from the authorities.

How can VATwatch help?

PwC’s VATwatch solution gives you a global overview of your flows, and helps you detect potential discrepancies and mismatches within your data before they’re identified by the tax authorities.

How can VATwatch help you manage VAT risk and gain valuable business insight?

Read more about VATwatch here to find out more about the benefits of our solution.

Do not hesitate to contact us to further discuss your situation.

Patricia More, TLS VAT Partner, PwC Geneva
+41 58 792 95 07 /

Antoine Wüthrich, Risk Assurance Partner, PwC Geneva
+41 58 792 82 27 /

Luxembourg to introduce VAT grouping

The Luxembourg Ministry of Finance announced last week that Luxembourg will introduce VAT grouping. The draft law will be submitted in the coming weeks to Parliament and the EU consultation process will be run in parallel. The date of entry into force must still be confirmed and it depends on the speed and the outcome of the legislative process. Bearing in mind the speed with which Luxembourg used to adopt new legislation, the VAT grouping provisions may already be available in autumn 2018.

On the above basis, Swiss businesses having subsidiaries in Luxembourg should undertake an assessment of the prospective VAT benefits of the VAT group in Luxembourg and the impact on the input VAT recovery position. Additionally, attention should be given to the Luxembourg companies having branches in the Member States of the European Union, which implemented the judgment of the Court of Justice of the European Union in Skandia, i.e. branches of a VAT grouped head offices are to be viewed as a separate taxable person with the consequence that any cost allocations between the VAT grouped head office and its branch are considered to be supplies for VAT purposes subject to VAT under the reverse charge. If the activity of the branch is to a greater extent exempt from VAT, the reverse charge VAT due on the cost allocations from the head office would lead to additional irrecoverable VAT. This is dependent on the way and the extent in which the Member State of the branch has implemented the Skandia provisions (e.g. Italy has recently fully implemented the Skandia judgment).

With the above in mind, it is now a good time to undertake an impact assessment (i.e. benefit of VAT grouping of the Luxembourg established companies vs the impact of this VAT grouping on the European branches (i.e. reverse charge VAT liability) because of the Skandia provisions) and explore options for the most beneficial set-up.

We are happy to advise you further on the above.

Contact Us

Dr. Niklaus Honauer
Partner, Indirect Taxes, Zürich
+41 58 792 59 42

Marcella Dzienisik
Senior Manager, VAT for financial services, Zürich
+41 58 792 49 38

Disclose 27, Focus piece 3: Fit for Growth – the smart way to cut costs, restructure and renew

Disclose – PwC’s online magazine

«It takes people, digital technologies and trust to achieve top performance.»

Reading our latest issue of Disclose ( you’re sure to get an adrenaline rush as we investigate a topic with particularly close connections to sport: high-performing organisations.

Focus piece 3 gives you an insight into the topic Fit for Growth – the smart way to cut costs, restructure and renew

Companies across industries and geographies are realising that the only way to unleash profitable growth is to cut costs as rigorously as they concentrate on growing revenues. As with any living organism, there’s no profitable growth without equally robust pruning. To get fit enough to thrive in an increasingly tough environment, you need to focus on a small number of differentiating capabilities, align your cost structure to these capabilities, and organise for growth. In this article we look at how the world’s fittest companies have mastered these three components to achieve and maintain healthy, profitable growth – and at the principles that can enable companies in this country, to to prune their business for sustained success.

Read the full report here.


Niklas Hoppe
Partner, Strategy& Switzerland
+41 58 792 2875

OECD Issues Model for Mandatory Disclosure of CRS Avoidance Schemes

On 9 March 2018, the Organisation for Economic Co-operation and Development (“OECD”) issued new model disclosure rules that require the mandatory disclosure of OECD Common Reporting Standard (“CRS”) avoidance schemes. The model will require lawyers, accountants, financial advisors, banks and other service providers to inform tax authorities of any schemes they put in place for their clients to avoid reporting under the CRS. Additionally, under the model, reporting of structures that hide beneficial owners of offshore assets, companies and trusts is required. The OECD also hopes to deter the design, marketing and use of these arrangements and schemes and bolster the overall integrity of the CRS.

The document issued by the OECD provides background information regarding the CRS anti-avoidance topic, includes text of the model itself, as well as a commentary to explain the model. As a next step, the model disclosure rules will be submitted to the G7 presidency in an effort to adopt a wider strategy of monitoring and acting upon market tendencies to avoid CRS reporting and hide assets offshore. Within the scope of the CRS anti-avoidance work, the OECD is also addressing cases of abuse of golden visas and other schemes used to circumvent CRS reporting.

Please refer to the link for access to the OECD’s new model disclosure rules.

Additionally, please refer to the link for access to the OECD’s accompanying FAQs.


Bruno Hollenstein
Partner, Operational Tax
+41 58 792 43 72

Successful Transactions with PwC


PwC is pleased to announce the closing of Banque Cantonale Vaudoise’s (BCV) divestment from “Tour Galfetti”, a mixed-use group of buildings of circa 20’000m2 located in the center of Lausanne.

Lausanne | Despite the relative complexity of this asset, the new owner, a leading institutional investor, was seduced by its exceptional location, its very high technical and architectural qualities, the tenant mix, and its economic potential.. We are delighted that our team was given the chance to satisfactorily help BCV in such a challenging transaction, including an initial phase of minute review and assessment of technical, legal, tax and value aspects.

Your PwC Team

The engagement was led by Dan Bihi-Zenou and executed thanks to the great support of Rubina Insam and Arnaud Egea. Invaluable support was provided by Alex Astolfi, Marie Seiler and Marcel von der Assen. The Partner in charge was Kurt Ritz, Head of Deals.

FinTech Action Plan – European Commission launches measures for a more competitive and innovative financial marketplace

For many financial services companies, financial technology (short “FinTech”) and technological innovation in general offer tremendous opportunities in terms of access to finance, operational efficiency, cost savings and competition. On March 8th 2018 the European Commission presented an action plan with a total of 23 measures to make better use of the opportunities offered by technological innovations in the financial services sector. The EU wants to become a global hub for FinTech in the future.

The Action Plan has three main objectives:

  • to support innovative business models to scale up across the single market;
  • to encourage the uptake of new technologies in the financial sector; and
  • to increase cybersecurity and the integrity of the financial system.

The FinTech Action Plan

In order to achieve the above mentioned objectives, the following measures are planned, among others:

  • The Commission will operate a FinTech laboratory in which European and national authorities will be able to collaborate with technology providers in a neutral environment.
  • Continuation of the already opened EU Blockchain Observatory and Forum. The Forum will report on the opportunities and challenges of crypto assets later in 2018 and is already working on a comprehensive study of distributed ledger and blockchain technologies.
  • The use of innovative technologies to interconnect national databases is intended to promote the digitization of information published by listed companies in Europe. In the future, this will enable investors to access essential information in order to make their investment decisions easier.
  • In order to improve the exchange of information on cyber security, the Commission will organise regular workshops.
  • The Commission will present a best practice guide on regulatory sandboxes based on guidance from the European Supervisory Authorities. A sandbox is a safe and controlled space where FinTech companies can test innovations in the market, with or without regulatory relief.

Regulation on Crowdfunding

In the field of crowdfunding, the European Commission has put forward a comprehensive proposal for a regulation which will create a European legal framework for this form of financing for the first time. The European Commission wants to make it easier for start-ups and small businesses to raise funds from investors via the internet. Due to different regulations, it is currently difficult for platforms to expand into other EU countries. Crowdfunding should therefore be subject to uniform rules in the future and the ownership of the license of one country should be sufficient to operate the respective platform throughout Europe.

In contrast, investors should be protected by clear rules on disclosure of information, governance and risk management rules and a coherent approach to the oversight of crowdfunding platforms.

The EU member states and the European Parliament still have to approve the proposal.

Contact Us

Günther Dobrauz
Leader PwC Legal Switzerland
+41 58 792 14 97

Tina Balzli
Head Banking
Legal FS Regulatory & Compliance Services
+41 58 792 15 54

Mark A. Schrackmann
Assistant Manager
Legal FS Regulatory and Compliance Services
+41 58 792 25 60