Pascal Taddei is "well known and respected" for his "technical excellence" in this field.
Pascal Taddei is a partner and management board member at ADB. He mainly advises on national and international tax law and specialises in restructurings, M&A, intragroup transactions, financings, fund structures, tax litigation and provides tax advice for private clients. Pascal is a lecturer at the EXPERTsuisse tax academy, Swiss Institute for Tax Studies (SIST), Master of Advanced Studies FH in Taxation/LL.M. Taxation, frequent speaker at seminars and author of academic publications on tax law.
How have demands for increased transparency in cross-border situations and transactions affected the Swiss corporate tax market?
It is a fact that foreign and Swiss tax authorities are increasingly focusing on cross-border situations and transactions, and, in particular transfer pricing and supply chains. When tax disputes arise on cross-border transactions or situations, we develop a strategy together with the client to identify and evaluate the different alternatives for dealing with the dispute at hand and to assess the impact alternative strategies may have. Due to the complexity and as various deadlines typically have to be met in such a procedure, it is important to involve the Swiss tax advisor at the very beginning of the dispute. In addition, we also see the positive trend that clients seek for tax advice and ask for communication with the tax authorities before implementation of a transaction in order to minimise the risk of future disputes.
What impact did the Swiss Tax Reform of 2020 have on your practice and on the foundations of the Swiss tax system?
With effect as of 1 January 2020 the tax privileges for holding, mixed, domiciliary and principal companies as well as for finance branches have been abolished as they were no longer accepted internationally. However, hidden reserves that have accrued during a tax privilege will be taxed separately upon their realisation over a maximum period of five years. Furthermore, various measures as the introduction of a patent box, additional deductions for R&D expenses, a step-up upon migration as well as a notional interest deduction have been introduced. In summary, the Swiss tax system now complies with the tax standards of the OECD while allowing Switzerland to remain one of the most attractive tax jurisdictions thanks to the recently enacted tax measures. Due to these opportunities our practice is now heavily engaged in implementing the new measures for our clients.
How does ADB Altorfer Duss & Beilstein AG stand out from its competitors in the market?
ADB is a pure tax law firm. While we also advise on related areas of corporate and commercial law, the DNA of our team is fully committed to tax law. Furthermore, we have a team of 17 qualified tax experts, which also makes a difference as compared to many big law firms which typically have smaller tax teams. Our team mainly consists of specialists, experienced in their particular field of tax law. This allows for permanent sparring at high level. Depending on the facts and circumstances, we are able to assemble a tailor-made team with the skills required and a high level of experience. Finally, our parallel endeavours as academics in tax law – be it as lecturers at universities, speakers at seminars or authors of tax law commentaries/scientific articles – provide for a deep technical knowledge of our professionals. This is to the advantage of our clients on the one hand, but also to the scientific community on the other, as practical experience feeds back into academic doctrine.
What is necessary to be an efficient corporate tax lawyer in the current climate?
It requires high specialisation as this high-end work is getting more complex and international. In addition, as it has shown during the corona crisis, a tax lawyer should use modern technology in order to be reachable, proactive and cost-efficient. For this reason, ADB heavily invested into the automatisation and digitalisation of our working processes. We are using online services and specialised applications for research and calculation work, and we use collaborative tools in order to be able to work remotely in the team and with our national and international clients. To increase our global reach, we are also part of an international network.
What advice would you give to younger tax lawyers hoping to one day be in your position?
Besides a sound education in the fields of Swiss and international tax law, a good tax lawyer is creative, precise, efficient and has good social skills, both in order to work closely with the client and for interactions with the tax authorities. Also crucial is the experience that constantly enlarges with the number and variety of cases. In addition, having a national and international network is a must. With such a skillset, a tax lawyer should be able to identify the client’s needs and to create confidence. This may lead to positive feedback and recommendations which enables a young tax lawyer to build up a client base and to expedite his or her career.