Last update on the internal taxation of MPAs
The governance of CERN foresees regular meetings between the CERN member states, Management and the Staff Association (SA). Such gatherings, called Tripartite Employment Conditions Forum (TREF), were established in 1994 (see CERN/RTG/8) to examine CERN remuneration and other employment conditions.
Last week a TREF meeting took place where the CERN Management presented its proposal to create a new type of subsistence. These so-called Cost of Living Allowances are meant to be eligible for taxation in the CERN host states. The conditions under which MPAs would receive a Cost of Living Allowance instead of a subsistence are still not clarified, though.
During the discussion, the SA repeatedly opposed the creation this new mechanism since we see it as a threat to the financial conditions of our Users colleagues. We vigorously argued that it would be inappropriate to pre-empt the findings of the Working Group on Personnel Support for Experiment by deciding to create such a new mechanism that could lead to a further erosion of the working conditions of our colleagues.
We regret to report that our opposition was not enough to prevent the endorsement of the proposal submitted by the Management which will be then submitted to the Finance Committee and Council in December. The “overwhelming” argument put forward by CERN Management was that the priority was to bring the Organization in line with the findings of an internal audit pointing to a risk of tax evasion and money laundering with the current definition of subsistence. It should be noted that despite many requests, the report of this audit could not be consulted by the SA, the Management refusing access.
While the SA is fully committed to implementing the strictest standards of legal compliance and transparency for CERN, we do believe that the protection of Users should be a top priority and that there are still solutions to be explored that could ensure a positive outcome regarding the taxation of subsistence. The Staff Association remains determined to defend your rights and we will keep you informed as further information becomes available.
Please do not hesitate to circulate the above to all interested parties and reach out to us should you want additional information.
