At its meeting on 12 December 2017, the Council of States will approve a motion by the Commission for Transport and Telecommunications to instruct the Federal Council to propose the necessary legislative changes to ensure that, at the administrative level, a portion of the income from the use of a company car for commuting is also compensated and that the deduction of travel costs for these taxpayers is excluded. The flat rate of currently 9.6 percent of the vehicle purchase price can be increased moderately for this purpose.
The background to this motion is the referendum of 9 February 2014, in which the bill on the financing and expansion of the railway infrastructure (Fabi) was approved. Since 1 January 2016, persons in gainful employment can only claim a maximum travel expense deduction of CHF 3,000 per year for direct federal tax purposes. Owners of business vehicles must therefore pay tax on the costs of journeys between their place of residence and place of work in excess of CHF 3,000 as income, in addition to the private share of 9.6 percent of the vehicle purchase price. Around half of the cantons also impose a limit on the deduction of travel expenses.
Council of States Ettlin opposed this practice by submitting motion 15.4259, "Fabi. Excessive administrative burden on company car owners". The motion was to instruct the Federal Council to instruct the FTA not to implement the administrative practice envisaged from 2016, which leads to additional income taxation of non-self-employed persons with a company car. The National Council, in its capacity as the second chamber of parliament, approved the motion in its session of 27 January 2017 with one amendment (see our contribution of 28 February 2017). On 12 December 2017, the motion was rejected by the Council of States by 16 votes to 23 with 1 abstention.
However, the original intention of Council of States Ettlin was rejected by Motion 17.3631, "Fabi. Excessive administrative burden on company vehicle owners", which was submitted by the Commission for Transport and Telecommunications. The motion aims to keep the administrative burden of tax returns for business enterprises as low as possible. By means of a moderate increase in the lump sum of the vehicle purchase price, which covers the private use of the business vehicle, and without the creation of a travel expenses deduction, the constitutionally required equal treatment of all taxpayers is to be ensured. The Council of States adopted the motion by 28 votes to 12 with 0 abstentions.
The minutes of the Council of States are available here.
