Citation: Peter Fröhlich, New regulation of the enforcement of tax claims: The end of special execution for legal entities, in zsis) 2/2025, A5, N [...] (publ.zsis.ch/A5-2025)
On January 1, 2025, a key change in debt collection and bankruptcy law will take effect: The previous provision (Art. 43(1) aSchKG), under which public authorities were required to assert tax claims in attachment proceedings against sole proprietorships, partnerships, corporations, and other legal entities registered in the Commercial Register, will be repealed.
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On January 1, 2025, a key change in debt collection and bankruptcy law will take effect: The previous provision (Art. 43(1) aSchKG), under which public authorities were required to assert tax claims in attachment proceedings against sole proprietorships, partnerships, corporations, and other legal entities registered in the Commercial Register, will be repealed. In the future, tax claims—provided the debtor is eligible for bankruptcy—must be enforced through bankruptcy proceedings. The aim of this legislative change is to prevent the abuse of bankruptcy law and to improve the equal treatment of creditors. At the same time—and often unnoticed—this reform leads to a stricter legal framework for the enforcement of tax claims.
This article explains the differences between the previous and the new legal situation. Particularly problematic is the enforcement under bankruptcy law of assessment notices for value-added tax or the enforcement of provisionally assessed income and wealth taxes (for sole proprietorships and partnerships) or profit and capital taxes (for legal entities).
Another focus is on the effects of the opening of bankruptcy proceedings on the debtor’s tax status and obligations. For legal entities in particular, this means that while they remain taxable entities, management is transferred to the bankruptcy administration. The latter must fulfill the obligations to cooperate with tax authorities.
The provisions regarding the over-indebtedness of legal entities have taken on added significance. Until December 31, 2024, the enforcement of tax claims through attachment generally allowed for the continuation of business operations. The amended legal situation effective January 1, 2025, means that due and unpaid tax claims can no longer be deferred in cases of financial distress and insufficient equity, but instead the company faces the threat of bankruptcy proceedings.
The reform significantly increases the risks for tax debtors facing bankruptcy and requires a careful legal assessment in cases of financial distress—both on the part of the companies and the authorities.
1. Enforcement of Tax Claims Under Old Law and Potential for Abuse
1.1 Introduction
On January 1, 2025, significant amendments to the Federal Act on Combating Abusive Bankruptcy01 came into force. These amendments are based on a motion by Council of States member Hans Hess dated September 29, 2011.02 The aim of the amendments is to prevent the abuse of bankru
