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Special tax deals for foreigners living in Saanenland come under scrutiny

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They say money makes the world go round. And around and around till the people who have it find a place where they don't have to spend so much of it on income tax. Saanenland is one such place. Canton Bern, however, is currently discussing plans to scrap the so-called "Pauschalsteuer" tax breaks for foreigners, an increasingly popular passtime in helvetic government chambers in light of the global economic environment, increased scrutiny on Switzerland as a tax haven, and cantons that have already voted to strike down these tax deals, such as Canton Zurich. And since half of the 160 people who profit from these special tax treaties in Canton Bern actually live in Saanenland, the discussion has taken over local discourse. Notably Gemeinde president Aldo Kropf is for the special tax deals, probably a sensible position to take given that SFr 4 million of the SFr 12 million francs which are earned every year in the canton go to the communes. In other words, it's better to create a win-win situation for foreigners who want to live and pay tax here or they will simply end up paying it somewhere else. Opponents, especially Swiss people, argue the deals are unfair, with wealthy individuals basically free to propose their own tax regime to the local authorities based loosely on property-related formulae, leaving ordinary income earners paying a much higher proportion of their earnings than foreigners with Pauschalsteuer agreements. So what do you think...


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