Memorandum from the HR Department and the Legal Service concerning taxation in SWITZERLAND

I/ 2006 income tax declaration

The 2006 income tax declaration form must be completed in accordance with the instructions provided by the Swiss authorities set out below, then signed and returned to the competent tax office. You must ask your tax office for an extension of the deadline for returning the form (see Part II below) if you are not yet in possession of all the documents needed to complete it.

We remind you that all members of the personnel are exempt from federal, cantonal and communal taxation on salaries and emoluments paid by CERN. Swiss members of the personnel have been exempt since the introduction of internal taxation on 1st January 2005.

A - General remarks for Swiss and non-Swiss members of the personnel domiciled in Switzerland

a) Swiss members of the personnel must indicate the amount of salary and emoluments paid by CERN (i.e. the total amount specified in Section A of the 2006 annual internal taxation certificate) and must attach this certificate (which will be available at the end of March 2007, in accordance with arrangements that will be published soon) to their declaration. They must also indicate the amount of any other income and assets, in accordance with the instructions accompanying the declaration form.

NB: Swiss members of the personnel who have already submitted their declaration but did not attach the above-mentioned certificate to it must send the certificate to their tax office as soon as they receive it.

b) Non-Swiss members of the personnel are not normally required to complete an income tax declaration form. They need do so only in certain cases, in particular if they own real estate or receive income from any other source of gainful employment in Switzerland or their spouse owns real estate, is in gainful employment or has movable assets or related income in Switzerland. However, they must not indicate the salary and emoluments paid by CERN nor attach the annual internal taxation certificate.

In all cases, both Swiss and non-Swiss members of the personnel are advised to state, either in the 'Comments' section at the end of the income declaration form or on a separate sheet of paper if the form does not contain such a section, that they are 'membre du personnel du CERN assujetti à l'impôt interne du CERN depuis le 1er janvier 2005 et donc exonéré d'impôt sur les traitements et émoluments versés par le CERN' (a member of the CERN personnel subject to internal CERN taxation since 1st January 2005 and therefore exempt from taxation on the salary and emoluments paid by CERN).

B - Swiss members of the personnel domiciled in France

Swiss members of the personnel domiciled in France will receive the 2006 income declaration form only if they have retained a financial link with Switzerland (for example, if they own real estate in a Swiss canton). In this case, they must complete and return the form in accordance with the instructions in Part I A a) above.

If you are sent the form erroneously, you must return it to the competent tax office explaining that you are 'membre du personnel du CERN, assujetti à l'imposition du CERN depuis le 1er janvier 2005 et sans lien de rattachement économique avec la Suisse' (a member of the CERN personnel subject to internal CERN taxation since 1st January 2005 and without any financial link with Switzerland).

IF YOU HAVE ANY SPECIFIC QUESTIONS REGARDING THE 2006 INCOME TAX DECLARATION, PLEASE CONTACT YOUR TAX OFFICE DIRECTLY

We should also like to remind you that this information does not concern CERN pensioners, as they are no longer members of the CERN personnel and are therefore subject to the standard legal provisions relating to taxation.

II/ Requests for an extension of the deadline

Members of the CERN personnel who have received or may yet receive an income tax declaration form may ask the competent tax office for an extension of the deadline for returning the form.

Swiss members of the personnel will be obliged to request such an extension as the Swiss authorities now require them to attach to their declaration the annual internal taxation certificate, which will not be available until the end of March (see Part I A a) above).

Canton of Geneva:

Declaration forms must be returned by 31st March. An extension to 30th June can be obtained by calling 022 327 49 00 (giving your tax number) before 31st March.

Canton of Vaud:

Declaration forms must be returned by 15th March. An extension to 15th June can be obtained by calling 021 316 00 00 (giving your tax number) before 15th March.

Canton of Valais:

Declaration forms must be returned by 31st March. An extension to 31st July can be obtained from the competent tax office. Please contact the HR Department for further information.

Canton of Fribourg:

Declaration forms must be returned by 31st March. An extension of the deadline may be obtained by writing to the competent tax office (stating your tax number and the reason for the request) before 31st March.

III/ Reimbursements

This memorandum is a follow-up to the one published in Bulletin No. 06-07/2007 of 12 February 2007, informing you that the Swiss Federal Tax Authorities had recognised CERN's internal taxation with retroactive effect to 1st January 2005.

This decision has implications for Swiss members of the personnel who have paid taxes on salaries and emoluments paid to them by CERN since this date.

The Swiss authorities have just informed CERN of the arrangements for the reimbursement, by the Cantonal tax authorities, of Swiss members of the personnel having paid all or part of the 2005 direct Federal income tax (impôt fédéral direct - IFD) and/or the 2005 and 2006 payment-on-account instalments for the Cantonal and Communal income tax (ICC).

The members of the personnel concerned must write to their cantonal tax office (the address is usually given on the IFD advisory slip and on the ICC payment-on-account instalments advisory slip), attaching all the necessary supporting documents, to request the reimbursement of the taxes they have paid on the salaries and emoluments paid by CERN since the introduction of internal taxation on 1st January 2005.

The Federal Tax Authorities have instructed tax offices to take the necessary steps to reimburse them.

Furthermore, some members of the personnel have paid all or part of the IFD and/or Cantonal and Communal payment-on-account instalments and have subsequently been reimbursed by CERN. In this case, they must return the sums they have received to the Organization, to which end they will be contacted by the Finance Department's Salaries Office directly.

HR Department
Tel: 73903

by HR Department