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We provide insight and advice on business-related topics such as accounting practices and tax optimization. Our specialists share their experiences and solutions to financial and business challenges.

What VAT rate applies to split products? The "Kinder Surprise" case

Ferrero Schweiz AG had to make substantial back tax payments because it mistakenly applied the reduced VAT rate when importing Kinder Surprise eggs. According to the Federal Court, the product consists of three parts, which is why the normal tax rate of 7.7% applies.

How does the subsequent measurement of inventories work?

To simplify the complex individual valuation of inventories, there are methods such as FIFO, LIFO, and the average cost method, which yield different financial results. FIFO values based on the oldest costs, LIFO on the most recent costs, and the average method based on an average of the acquisition costs.

When is there an indirect partial liquidation?

The indirect partial liquidation is the prohibited sale of a company with non-operational assets for tax base reduction. It is treated as taxable capital income, not as tax-free capital gain.

The principles of taxation explained

Art. 127 BV sets the basic principles of taxation, including tax design and collection principles. It also prevents inter-cantonal double taxation and clearly regulates tax obligations.

Leverage Effect – Fine Line Between Opportunity and Risk

The leverage effect enhances the return on equity through borrowing; this can increase both profits and losses. When applied correctly, it can be profitable, but it carries risks with market changes.

The optimal capital structure for your company

The capital structure of a company, the ratio of equity to debt, is central to its success and influenced by various factors such as costs and interests of the capital providers. A balanced structure allows for flexibility and takes into account the different requirements of equity and debt providers.