Swiss aim for higher taxes on the rich

The tax haven for a lot of Formula 1’s rich, Switzerland, is considering making life more expensive for foreigners. Many super-rich people around the world flock to Switzerland because the government tax purely on ‘direct’ taxes, rather than taxes based upon income or assets.

Swiss finance ministers held a meeting last week to discuss changing the system. The proposed new system would see most millionaires having their tax bills doubled. Even with this change, millionaires will still be better off in Switzerland than most other European countries – Michael Schumacher is rumoured to pay around $60,000 a year in tax to his local region. If he was resident in France or Germany, there is the possibility he would pay up to 10 times or more on income tax.

Notable Formula 1 residents in Switzerland include Kimi Raikkonen, Nick Heidfeld, Fernando Alonso, Bernie Ecclestone, Jarno Trulli, Jacques Villeneuve and Alain Prost.