Swiss vote on 'popstar paradise' tax system

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http://www.todayonline.com/World/EDC121020-0000063/Swiss-vote-on-popstar-paradise-tax-system

A tax system that has attracted wealthy foreigners like Phil Collins and Michael Schumacher to live in Switzerland will be put to a vote to see if the people want to scrap it.

An alliance of left-wing parties and trade unions said on Friday they had collected the 100,000 signatures needed to put their proposal, "Enough with tax privileges for millionaires", to a referendum.

Switzerland has attracted more than 5,000 wealthy foreigners with tax deals based on the rental value of their property rather than their actual income or wealth, on the condition that they do not work in the country.

Along with Formula One driver Schumacher and popstar Phil Collins, Switzerland's wealthy expats include singer Tina Turner and the richest of all, Ingvar Kamprad, the founder of furniture store IKEA, who moved from Sweden in 1976.

Opposition to favourable treatment for tax exiles has grown in Switzerland, and the cantons of Zurich, Schaffhausen and Appenzell have already scrapped the policy after referendums.

The special tax was first introduced in 1862 by the canton of Vaud along Lake Geneva in a bid to help the tourist industry by encouraging wealthy pensioners to move to the country. The government says 22,000 jobs are dependent on the scheme.