Switzerland Has Become 'Too Complicated' For Foreign Investors

by Ulrika Lomas, Tax-News.com, Brussels

09 December 2005

A professor at Lausanne-based IMD, one of the world's leading business schools, said this week that in spite of Switzerland's tax advantages compared to other jurisdictions, the country's administrative system has become "too complicated" for foreign investors.

Addressing a forum in Zurich organised by the Osec Business Network Switzerland, an exporters group, Professor Stéphane Garelli of the IMD business school observed that while high-tax countries such as the Netherlands or Sweden were less attractive than Switzerland in terms of tax, they have gained an advantage in attracting foreign businesses due to the relative simplicity of their administrative systems.

To improve this situation, Mr Garelli argued that several government functions, such as education and security, should be centralised, and the process for creating legislation streamlined and simplified.

"Switzerland is too complicated," the professor stated.

He went on to note that:

"Before creating a new law we should abolish the old one."

"In Switzerland we examine good ideas until they have become bad ideas. We should forge ahead and make decisions."

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