Business

Tax is becoming a big issue for family businesses

The tax burden for family businesses is becoming a bigger issue for the sector, particularly in Europe where governments increasingly look to plug budget deficits by raising taxes.

A recent study by the business services group PwC and and the Swiss business association economiesuisse calculated what an increase in the country’s estate tax would have on family businesses. A rise in the tax, which is being considered by the Swiss government, could result in the loss of up to 50% of the equity held by the country’s family businesses, according to the research.

The report said that up to 80% of businesses in Switzerland are family controlled and out of those one in five will be transitioning to the next generation by 2020. “A deteriorating in the conditions for family companies would have serious consequences for the economy as a whole and for workers in Switzerland,” said Heinz Karrer, President of economiesuisse.

Concern about increasing tax burdens has also been expressed recently by German family businesses. Lutz Goebel, the president of the country’s powerful lobbying group the Association of Family Businesses, has been strident in his objections to any changes in inheritance tax that have been talked about by the country’s finance minister Wolfgang Schäuble.

“Schäuble has promised… a minimally invasive proceed when it comes to inheritance tax reform,” said Goebel in a statement. “Now he is reneging on these intentions and getting an axe out to hurt family enterprise as well as Germany’s unique financing culture.”

Subscribe

You will need a Premium Plus Subscription to access this database.

Exclusive news, analysis and research on global family enterprise and private investment offices.

Access to the most comprehensive fully interactive database on global family offices, principal investment offices, and family enterprises.

Check Deal Data, Senior Staff, and New Analysis on more than 1000 family/principal investment and holding groups

Already have an account? Login

Subscribe

You need at least a Premium Subscription to read this article.

The most comprehensive information service on the global family enterprise world, featuring exclusive news, analysis, research and data on global family enterprises, family offices, and private investment offices.

Premium

£299

per year

  • Exclusive reports, analysis and commentary
  • Exclusive access to family/private investment office deal information
  • Exclusive interviews with principals and senior management of family/investment offices
SUBSCRIBE NOW

Premium+

£399

per year

  • Access to All of Premium
  • Access to all of FamilyCapital Analytics, our interactive database with more than 1000 detailed profiles of family investment groups

More Info

SUBSCRIBE NOW

Already have an account? Login

You've reached the end.

Continue reading free articles by registering as a Member.
Or choose a Premium Plan.

Membership

Free

  • Exclusive reports, analysis and commentary
  • Receive the twice-weekly newsletter
REGISTER NOW

Premium

£299

per year

  • Exclusive reports, analysis and commentary
  • Exclusive access to family/private investment office deal information
  • Exclusive interviews with principals and senior management of family/investment offices
SUBSCRIBE NOW

Premium+

£399

per year

  • Access to All of Premium
  • Access to all of FamilyCapital Analytics, our interactive database with more than 500 detailed profiles of family investment groups

More Info

SUBSCRIBE NOW

Already have an account? Login