{"id":100003692,"date":"2022-03-04T14:08:34","date_gmt":"2022-03-04T13:08:34","guid":{"rendered":"https:\/\/swissholdings.ch\/fr\/swissholdings-comments-on-public-consultation-document-pillar-one-amount-a-draft-model-rules-for-tax-base-determinations\/"},"modified":"2022-03-04T14:08:34","modified_gmt":"2022-03-04T13:08:34","slug":"swissholdings-comments-on-public-consultation-document-pillar-one-amount-a-draft-model-rules-for-tax-base-determinations","status":"publish","type":"post","link":"https:\/\/swissholdings.ch\/fr\/swissholdings-comments-on-public-consultation-document-pillar-one-amount-a-draft-model-rules-for-tax-base-determinations\/","title":{"rendered":"SwissHoldings comments on public consultation document: Pillar One \u2013 Amount A: Draft Model Rules for Tax Base Determinations"},"content":{"rendered":"
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Introductory remarks
\n<\/strong>We welcome the efforts made to simplify the tax base determination rules under Pillar One. We believe there are valid and appropriate reasons for even further simplification.<\/p>\n

In the spirit of transparency that underpins our collaborative efforts, we note that the proposed rules should be aligned with, and calibrated towards, the ordinary course of business as conducted by MNEs in scope as opposed to rarely occurring events. As such, we do not believe that there is a need for such complex rules addressing restatements of Consolidated Financial Statements of a Covered Group or for the, somewhat anti-abuse directed, rules addressing treatment of tax losses in case of Business Combinations.<\/p>\n

Business alignment and simplification
\n<\/strong>All MNEs in scope are exposed to cyclicality both in terms of macro-economic impacts and capital expenditures. As such, we would strongly encourage to make no differentiation for losses to be car- ried forward and not to restrict such right in time.<\/p>\n

Similarly, we believe that residual\/excess profit shortfall, should be reintroduced and be allowed to be carried forward indefinitely.<\/p>\n

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When it comes to adjustments to the tax base for purposes of Amount A, it is critical to have a strong and clear policy, and principles, to determine the tax base for the Amount A in line with Pillar 1 objectives of reallocating profits to countries based on where the customers, consumers and users are, in line with the scope of the sourcing rules.<\/p>\n

The objective would be to determine what is the on-going underlying operating and trading profit generated by the sales to those customers and consumers, in the ordinary course of the business. This would require excluding any exceptional and one-offs items or events, whether generating a profit or a loss at group level, that have no economic and business, and even geographic, connection and no nexus with those sales, such as:<\/p>\n