Frontier workers, tax war with Ticino: Bellinzona blocks 50 million refills (cross-border guide)

Context

Frontier workers, tax war with Ticino: Bellinzona blocks 50 million refills

The Council of State of the Canton of Ticino has officially announced the precautionary suspension of 46% of the refunds of taxes at source due to Italy for the current year. A cut of 50 million Swiss francs (compared to a partial payment of 58.8 million), in reaction to the so-called 'health tax' that the Lombardy Region intends to impose on so-called old border workers with G permits.

The decision of the Ticino State Council was taken following an emergency meeting with representatives of the Lombardy Region and the Italian government. "We cannot tolerate a measure that penalizes our compatriots without adequate debate and consultation with the Swiss authorities," said the President of the State Council of Ticino, Guido Ghirardi.

The health tax, which provides for a payment of 500 euros per year for each border worker, has been the subject of criticism from border workers and their representatives. "It is a discriminatory measure and does not respect the rights of border workers," said the President of the Swiss Border Association, Franco Morandi.

The precautionary suspension of tax refunds at source could have significant consequences for the Lombardy Region, which already received CHF 58.8 million in 2022. The loss of 50 million Swiss francs represents approximately

Operational details

Frontier, fiscal war with Ticino: Bellinzona blocks 50 million refunds The decision of the Canton of Ticino to block financial refunds destined for the Lombardy Region has sparked a controversy with Piedmont, which instead has decided to continue with the discourse related to the health tax. Councillor of State Christian Vitta specified that "there is no suspension for Piedmont, given that the Region has decided not to carry forward the discourse related to the health tax". According to official sources, Ticino has blocked the refunds of 50 million francs destined for Lombardy, which should have received half of its share, equal to 25 million francs. Instead, Piedmont will receive its full 8.6 million francs, as required by current legislation. Ticino's decision was taken in response to the position of the Lombardy Region, which decided not to continue with the discourse related to the health tax. The legislation governing financial refunds between the Swiss cantons was amended in 2020, with the ratification of the Federal Act on Administrative Cooperation (LCA) of 17 December 2020. The law provides that Swiss cantons may block financial refunds if one of the parties fails to comply with contractual obligations. The Lombardy Region has decided not to continue with the discourse related to the health tax, which was proposed in 2020. The tax was The situation is particularly complex, as the Lombardy Region and Piedmont have decided to continue with the health tax, despite Ticino's decision to block financial refunds. Ticino's decision sparked a controversy with the two regions, which decided to continue with the discussion related to the health tax. To resolve the situation, it is necessary for the three parties (Ticino, Lombardy Region and Piedmont) to sit down at a negotiating table to discuss the situation and find a solution. It is also necessary for the three parties to comply with the contractual obligations and regulations in force, in order to avoid further controversy and conflict. Ticino's decision to block financial refunds sparked a controversy with the two regions, which decided to continue with the discourse related to the health tax. The situation is particularly complex, since the Lombardy Region and Piedmont are two of the main regions of Northern Italy, which have close economic and commercial relations with Ticino. To avoid further controversy and conflict, it is necessary for the three parties to sit down at a negotiating table to discuss the situation and find a solution. It is also necessary for the three parties to comply with the contractual obligations and regulations in force, in order to avoid further controversy and conflict.

Key points

Frontier workers, tax war with Ticino: Bellinzona blocks 50 million refills

The CGIL union has raised the issue of the frozen tax on refunds for frontier workers in Switzerland. The method of the blockade is interesting: Piedmont collects the entire 8 million, while Lombardy freezes 46% of the funds – underlines Giuseppe Augurusa, national head of CGIL for frontier workers –. Fifty million is a very significant figure, but it is the logical consequence of an act: that tax is constitutionally illegitimate because it introduces double taxation.

On the Italian front it seems to speak among the deaf, there is a theme of obvious political responsibility: do they really hope with this money to stop the flight abroad of nurses and doctors? Switzerland, in particular the canton of Ticino, is an important hub for Italian workers. According to ISTAT statistics, in 2020 about 130,000 Italian workers worked in Switzerland, an increase of 10% compared to the previous year.

The frozen tax on refunds was introduced in 2019, with the Federal Law on Compensation Amounts (LIFC) of 23 June 2018, which provides for a reduction in compensation amounts for frontier workers. According to the legislation, compensation amounts were reduced by 20% for frontier workers who worked in Switzerland for less than 6 months, and by 40% for those who

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Source: ilgiorno.it