Questionable compensation practice for board members

Actually, there’s no doubt: anyone who has a seat on a board of directors receives a fee as an individual («natural person»). In practice though, in many cases, this is handled differently. There are known cases where board members charge through a legal entity which leads to political discussions and restrictions in some cases.

But what does it mean on a legal and fiscal regulation level? Peter Schmid, Tax Expert at SwissLegal in St. Gallen, made it clear: «To charge board member activities through one’s own company is just wrong. The legal requirement is clearly leading to a different direction».

Please find the whole article in «Schweiz am Wochenende» here.

saw_20170715_0_0_1bzgma-(1).pdf (774 KB), pdf