Tax avoidance

Tax avoidance differs from evasion because the facts are generally disclosed and no direct filing duty is breached. It uses legal forms to obtain a tax advantage, such as choosing a transaction structure, location or financing method. Swiss tax authorities and courts may disregard arrangements that are unusual, economically inappropriate and chosen mainly for tax savings, applying an abuse-of-law approach. The boundary between legitimate tax planning and abusive avoidance is fact-sensitive. Advance tax rulings can provide practical certainty if facts are complete and accurate.