Tax planning news
Switzerland's a 'tax shelter for super-rich'
5 January, 2007
Critics are blasting Switzerland for becoming a "tax shelter" for the super-rich including corporate titans, athletes and pop stars
The comments come as it emerged that French rock 'n' roll star Johnny Hallyday received a special tax deal from the Swiss after getting fed up with handing over much of his earnings to the French government.
President of France Jacques Chirac has said he has "diplomatic regrets" about the deal which has allowed Hallyday to claim his permanent residence in the western Swiss community of Gstaad.
According to Swiss law, wealthy people from outside the country can claim residency if they live for six months and a day in the country and pay a fixed tax based on expenses, such as rent or assets rather than a percentage of income.
"I'm sick of paying, that's all," Hallyday told celebrity magazine Paris Match, adding that 70 per cent of everything he earned in France went to taxes.
His tax bill in Switzerland looks set to be considerably less and could be as low as £105,000.
Switzerland has now attracted some 3,700 wealthy expatriates to the country thanks to its tax laws and the Swiss Social Democratic Party is now hoping to change the way the system works.
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