In its session of 18 September 2017, the Council of States discussed the differences concerning the Money Gaming Act and maintains that profits from certain money games should be taxed from CHF 1 million upwards.
According to the Federal Council's business (15,069), the Federal Council wants to regulate money games in Switzerland in a coherent and up-to-date manner in a single law. To this end, on 21 October 2015 it adopted a dispatch with a corresponding draft law for the attention of parliament.
Differences between the two councils exist in particular in the taxation of winnings from money games. In contrast to the Federal Council and the National Council (cf. the minutes of 15 March 2017), the Legal Commission of the Council of States does not wish to generally exempt winnings from gambling from tax and, within the framework of the adjustment of the differences in the Money Gaming Act, requested its Council to stick to its model, according to which such winnings should be taxed from a tax-free amount of one million francs (cf. the media release of the Legal Commission of the Council of States of 28 March 2017).
In its session of 29 May 2017, the Council of States thereupon decided to maintain the taxation of profits above a tax-free amount of CHF 1 million. This meant that there was still a difference with the National Council on this point (see our contribution of 29 May 2017).
On 26 June 2017, the Legal Affairs Committee of the National Council recommended that the National Council stick to its decision in the settlement of differences and that profits from major matches should no longer be taxed in future (media release of the Legal Affairs Committee of the National Council dated 26 June 2017). However, a minority of the commission could imagine approaching the Council of States and accepted the tax-free allowance of up to CHF 1 million, or even wanted to provide for it for winnings from online casino games. The Commission had also drawn up compromise proposals on a number of open points.
In its session of 12 September 2017, the National Council subsequently voted to adhere to its resolution (and thus to the recommendations of its Legal Affairs Commission) and not to tax the winnings from major games in future. On this essential point, therefore, there was still a difference between the two parliamentary councils (see also our contribution of 15 September 2017).
On 13 September 2017, the Committee for Legal Affairs of the Council of States thereupon issued a recommendation to the Council of States, which, with regard to the difference in question, provides for an extension of the tax-free allowance of up to CHF 1 million also to winnings from online participation in casino games (in line with the proposal of the minority of the Committee for Legal Affairs of the National Council).
In its meeting on 18 September, the Council of States decided to maintain the taxation of winnings from certain money games above CHF 1 million. The Council followed its Legal Affairs Commission by 37 votes to 2 with 3 abstentions and maintains the taxation. Consequently, there is still a difference between the two parliamentary councils.
