Bank Fines Not Tax Deductible, Cabinet Decides

Bank Fines Not Tax Deductible, Cabinet Decides by swissinfo.ch

Criminal fines imposed on corporations should not be tax deductible, but tax rebates could be claimed on illegally gained profits that a court has ordered a company to pay back, the Swiss government advised on Friday.

The cabinet was responding to a parliamentary motion to clarify the situation in light of a CHF2.6 billion ($2.8 billion) fine imposed by the United States on Credit Suisse bank earlier this year for the part it played in tax evasion offences.

The suspicion that the bank might try to claim tax expenses against the fine raised political hackles, prompting the motion from centre-left Social Democrat parliamentarian Susanne...