Swiss Rules to Curb Shareholder Tax Avoidance Effective Nov. 1

The Swiss government has set a Nov. 1 effective date for transparency rules that it hopes will reduce tax avoidance by ‘bearer’ shareholders.

The new transparency rules require that companies no longer issue bearer shares—equity in a company that is owned by whoever holds a physical stock certificate—unless they are a listed company or they structure the share through an intermediary. Existing bearer shares will be automatically converted into registered shares after an 18-month transitional period.

• Phasing out bearer shares was recommended by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes. Bearer shares are considered ...