EXECUTIVE MASTER IN INTERNATIONAL TAXATION (LL.M.) OF THE UNIVERSITY OF NEUCHÂTEL, SWITZERLAND

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1 EXECUTIVE MASTER IN INTERNATIONAL TAXATION (LL.M.) OF THE UNIVERSITY OF NEUCHÂTEL, SWITZERLAND THE NEW LIECHTENSTEIN TAX LAW RULES OF THE GAME IN THE NEW DECADE 2012

2 COURSE CONTENT This seminar will address the new Liechtenstein tax system entered into force on 1 January 2011 by way of comparison to the equivalent Swiss tax provisions. In particular, it will be systematically demonstrated that the Liechtenstein tax regime better complies with EU State Aid requirements and OECD standards than the Swiss tax regime as per today. In addition, the seminar will analyse cross-border taxcompliant planning structures between Liechtenstein and Switzerland for individuals and corporations (including trusts, foundations, partnerships and collective investment schemes), and the practical uses of Double Tax Conventions by Liechtenstein collective investment schemes, trust structures and foundations. In particular, attention will be paid to the Liechtenstein foundation, which has been prominent in the Swiss financial centre for over a decade due to its economic benefits and its practical uses for high net worth individuals as an instrument for private wealth management and estate planning. Liechtenstein foundations are often proposed by Swiss banks as a useful estate and tax planning instrument, though Switzerland has not addressed the tax problems arising from foreign foundations in its domestic tax law systematically. In fact, the tax treatment of Liechtenstein foundations is not even harmonized across Switzerland, and may vary according to cantonal practices. Their use is, accordingly, surrounded by considerable controversy. BIOGRAPHY Lic. iur. Roland A. Pfister, EMBA (roland_pfister@gmx.ch) Roland A. Pfister studied law at the Universities of Neuchâtel and Granada. After the completion of his law degree, he worked for an international law firm in Belgium and a leading investment bank in Zurich, and then joined the tax department of one of the Big Four accounting firms in Switzerland. In 2008, Roland A. Pfister started his doctoral thesis in international tax law while working at the University Liechtenstein, where he teaches National and International Tax Law. During that time, he obtained additionally an Executive MBA in Wealth Management and was a visiting researcher at the Harvard Law School. In 2011, he started working as tax advisor of Tavernier Tschanz in Geneva. Further, he lectures for the International Tax Program (LL.M.) of the University of Neuchâtel, for the International Tax Program (LL.M.) of the Universidad Torcuato Di Tella in Buenos Aires, for the International Tax Program (LL.M.) at the Brazilian Institute of Tax Law (IBDT) and for the Society of Trust and Estate Practitioners (STEP). In the context of the OECD and the Italian Council of Ministers, he wrote the Swiss report for the IBFD on "Residence of Individuals under Tax Treaties and EC Law". His main areas of expertise include Swiss, Liechtenstein and international tax law for individuals and corporations as well as collective investment schemes, trusts and foundations.

3 REFERENCE LIST (not exhaustive) Legal Sources Law of on National and Municipal Taxes (Tax Act FL). Ordinance of on National and Municipal Taxes (Tax Ordinance FL). Regierung des Fürstentums Liechtenstein: Stellungnahme der Regierung an den Landtag des Fürstentums Liechtenstein zu den anlässlich der ersten Lesung betreffend die Totalrevision des Gesetzes über die Landes- und Gemeindesteuern (Steuergesetz; SteG) sowie die Abänderung weiterer Gesetze aufgeworfenen Fragen vom , Nr. 83/2010. Model Tax Convention on Income and on Capital condensed version (Update: 22 July 2010). The 2002 Model Agreement on Exchange of Information on Tax Matters and its Commentary. Articles Regierung des Fürstentums Liechtenstein (Hrsg.): Zukunft Steuerstandort Liechtenstein Konzept zur Totalrevision des Gesetzes über die Landes- und Gemeindesteuern, Vaduz, Hosp Thomas/Langer Matthias: Abkommensberechtigung von liechtensteinischen Stiftungen, in: ZFS 2011/1, S Pfister, Roland A./Knörzer, Patrick: Taxation of Liechtenstein Foundations, in: Step Journal 2011/April, S Herbst, Christian/Brehm, Mark: Tax Information Exchange Agreement Model Informationsaustausch mit Steueroasen, in: IWB Nr. 14 vom , Fach 10, Gruppe 2, S Federal Tribunal Judgment of 22 April 2005 = StR 2005, p Federal Tribunal Judgment of 17 November 2009 (BGE 135 III 614). Administrative Court Decision of 5 March 2009 (A-7342/2008 and A-7426/2008) = RDAF 2009 II, p Administrative Court Decision of 10 January 2011 (A-6053/2101) Administrative Court Decision of 23 March 2011 (A-6903/2010) RDAF 2008 II p Bauer-Balmelli, Maja/Harbeke, Nils Olaf, 2009: Die Liechtensteinische Stiftung im Schweizer Steuerrecht, in: ZSIS BestCase N. 5H (2009), S Opel, Andrea, 2009: Familienstiftung und Trust Postulat für eine kohärente Besteuerung, in: ASA 78 (2009), S

4 INTRODUCTION Monday, Time Course content Professor/Lecturer Hours Room Introduction Objective Course contents and structure of the seminar Liechtenstein an Alternative to Switzerland Introduction into the new Liechtenstein Tax Law Key Information about the Principality of Liechtenstein Challenges of Liechtenstein s Tax Strategy Principles of Liechtenstein s Tax Reform Overview of the New Tax Law Provisions New Liechtenstein Tax Law for Individuals and Corporations Individuals: Wealth Tax and Personal Income Tax Corporations: Corporate Income Tax Liechtenstein s Tax-Compliant Planning Instruments Ordinary Taxed Corporations Holding Company Foundation Private Asset structure Trust Intellectual Property (IP) Box Collective Investment Schemes Liechtenstein s Treaty Network Double Tax Conventions (DTCs) Tax Information Exchange Agreements (TIEAs) 12:30 Lunch break 13:30 Tax-Compliant Planning Strategies between Switzerland and Liechtenstein Lump Sum Tax Regime for individuals (with particular attention to the residence of individuals under DTCs) Tax Planning with the effective place of management Liechtenstein Trust structures for non-swiss residents Liechtenstein Collective Investment Schemes structures (with particular attention to the taxation of carried interest and performance fees) in Switzerland and Liechtenstein Partnership structures Holding companies compared between Switzerland and Liechtenstein Swiss or Liechtenstein controlled IP subsidiary collecting royalties from high tax countries Coming and going: Exit strategies for Swiss and Liechtenstein individuals Swiss/Liechtenstein resident individual holding company in Switzerland or Liechtenstein operative subsidiaries in Latin America Lic. iur. Roland A. Pfister, EMBA Lic. iur. Roland A. Pfister, EMBA 4-4 -

5 The Liechtenstein Foundation in Swiss Tax Law Advantage of Liechtenstein and the Liechtenstein foundation From a tax perspective From a civil perspective ( asset protection ) Transparent versus intransparent foundation Relevant criteria for the difference in comparison with trust structures The ratio legis of the place of effective management in Switzerland with Liechtenstein foundation Taxation of a transparent Liechtenstein foundation in Switzerland Creation Ongoing taxation Distribution Liquidation Taxation of an intransparent Liechtenstein foundation in Switzerland Creation Ongoing taxation Distribution Liquidation Liechtenstein foundation in International Tax Law The application of DTC to the Liechtenstein foundation The application of DTC to the founder The application of DTC to the beneficiary Various tax planning case studies End of the lecture

6 CONTACT DETAILS Roland A. Pfister, EMBA