Switzerland’s Federal Council on Sept. 9 adopted report on the tax treatment of fines including fines that arise in an international context. The report concludes that fines, including tax penalties and financial administrate sanctions, are putative in nature and therefore can not be deducted. Profit disgorgement sanctions, on the other hand, which require repayment of taxable profits obtained by illegal acts, can be deducted. For more details, see release, report (in German).
