Proposed reform concerning cross-border mergers

After several delays, the government intends to present a Draft Bill before the Federal Cabinet by the end of June 2006 substantially amending the Reorganization Tax Act  (RTA) and various tax laws in order to bring them in line with EU law and to facilitate their application to cross-border reorganizations. The Draft Bill, called "Tax Measures accompanying the Introduction of the European Company and for the Change of other Tax Regulations" (Gesetz über steuerliche Begleitmassnahme…