The effects of financial accounting on Host Country taxable income, Host Country Switzerland

According to Swiss tax law, taxable income is to be calculated based on the financial statements drawn up in accordance with the accounting rules in the Swiss Code of Obligations (CO) (Massgeblichkeitsprinzip). In other words, in Switzerland, the financial statements for accounting and tax purposes are basically identical, so that there is a strong statutory relationship between the tax law and the accounting rules. (...)