IDEAS home Printed from
   My bibliography  Save this paper

Die Primärinzidenz von Bankgeheimnis und Verrechnungssteuer in den Kantonen der Schweiz


  • Manfred Gärtner



Swiss banking secrecy laws not only tempt foreign investors to remain silent about at least part of their capital incomes and, thus, not pay taxes as obliged by law. Therefore, Switzerland introduced a withholding tax on capital income in 1934, primarily in order to coerce domestic residents to report levels of wealth and derived incomes properly. This paper asks whether a withholding tax rate of 35 percent suffices to achieve this goal. For this purpose, marginal income tax rates are computed and income distributions are estimated for each of Switzerland's 26 cantons, distinguishing between married and unmarried tax payers. From these raw data we compute income levels and shares of tax payers for whom the withholding tax does not work as intended.

Suggested Citation

  • Manfred Gärtner, 2006. "Die Primärinzidenz von Bankgeheimnis und Verrechnungssteuer in den Kantonen der Schweiz," University of St. Gallen Department of Economics working paper series 2006 2006-20, Department of Economics, University of St. Gallen.
  • Handle: RePEc:usg:dp2006:2006-20

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Banking secrecy; income tax; withholding tax; incidence; tax evasion; income distribution;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usg:dp2006:2006-20. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joerg Baumberger). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.