Swiss Bankers Battle Socialists to Keep Tax Breaks

Geneva’s bankers are concerned that Socialist Party proposals to scrap a 150-year-old tax break for wealthy foreigners will scare off their best clients.

Their anxiety increased last month with the submission of a national petition to abolish the so-called forfait, an expenditure-based levy foreigners negotiate with Swiss cantons to avoid paying income tax. Appenzell Ausserrhoden will become the third canton to reject the system on Jan. 1 and Basel will follow 12 months later.