Attitude towards tax here generally good

According to Heinz Tännler, the cantonal director of finance, the attitude of companies and locals with regard to tax is generally good.

He was speaking following a newspaper report in St Gallen which stated that officials there, having carefully scrutinised tax returns, had managed to ensure a further CHF 44 million flowed into the cantonal coffers.

While the nomenclature of the officials working in this area in St Gallen may be different from that used in the canton of Zug, there are indeed book-keeping experts and auditors who also check through returns here, of course. However, Tännler went on to explain he saw the tax authority here more as a service-provider, though naturally, should anything appear suspect, additional documents could be demanded to help tax officials with their enquiries.

Here in Zug, auditing experts are on hand to look into particularly complex cases, not least bearing in mind there are companies based in the canton with complex fiscal structures. Very often, these experts, chartered accountants, conduct their enquiries on the premises of the firms concerned, be they private companies or corporate bodies, in a similar way to how checks are made on stock corporations. For example, invoices and receipts are scrutinised and spot-checks made, too, the auditors looking at everything in close detail.

Tännler pointed out that, with Zug being such a small canton, its relationships with companies were different from those in larger cantons and authorities there. “Everything is so much more straightforward here. We all know each other; we know where to look. For my part, what I think is important is having a healthy balance with moderate checks. Basically, companies and locals here have a generally positive attitude when it comes to tax,” he said.

Neither did he think it necessary to step up controls, as this could prove counter-productive. “This would lead to a worse situation for our clients. And we do not want that,” he said, adding how the approach of the tax authority was generally positive, too.

Tännler added how he sought a relationship with clients built on trust, while still ensuring detailed checks were made wherever it was felt appropriate.