Cash Pooling | KPMG | CH

Cash Pooling – landmark decision of Swiss Federal Supreme Court

Cash Pooling

In the context of a zero balancing cash pool arrangement, the Swiss Federal Supreme Court (“Court”) noted that unsecured upstream and cross-stream loans do not meet the arm’s length test and therefore should have been treated as blocked for dividend distribution.

1000

Director / Attorney-at-Law

KPMG Switzerland

Contact

Related content

The Court decided that the statutory auditors wrongfully confirmed the legality of the respective amount for dividend distribution. In light of the decision of the Court it is strongly recommended that Swiss groups/subsidiaries of a group with a zero balancing cash pool review before year-end their cash pooling structure.

© 2017 KPMG Holding AG is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.

Connect with us

 

Request for proposal

 

Submit