Neue Zürcher Zeitung | August.11.2014
Stefan Schultes-Schnitzlein, head of Orrick’s German tax practice, discussed the effects of a dispute between Brazilian and Swiss tax authorities in the article “Die Schweiz Leidet Unter Brasiliens Willkür” ("Unclear Tax Rates for Corporates – Brazil´s Discretion Makes Switzerland Suffer"), published by Neue Zürcher Zeitung.
The dispute arose as a result of a feud between the Brazilian tax authorities and Vale S.A., a major Brazilian multinational and the third largest mining company in the world. Taking advantage of the tax rules in the Swiss canton Waadt, Vale had received tax credits in Brazil and was later ordered to pay nearly €6.6B ($8.8B) to the Brazilian authorities. Brazil has designated Switzerland as a low tax country, which can result in extra tax costs to groups active in both countries.
Click here to read the original German-language article.