This refers to Circular No. 28 of the Swiss Tax Conference (CSI), dated August 28, 2008, which was drafted by a private-law association comprising the directors of the cantonal tax administrations and the Federal Tax Administration.
It proposes a uniform method for valuing unlisted securities for the purposes of wealth tax in the various cantons. CSI 28 does not have the force of law. The Federal Supreme Court nevertheless recognizes its significant practical value, considering its method to be, in principle, appropriate and reliable for determining the market value of unlisted securities, while acknowledging that other methods may be appropriate depending on the circumstances.
The method is based primarily on the company's profitability and thus includes a goodwill component. The higher the profits, the greater the tax value of the shares.
