On Apr. 2, 2025, SWI GVT confirmed liquidation profits of sole proprietorships will no longer give rise to a request for reimbursement from the Confederation to the cantons.
At its meeting on Apr, 2, 2025, the Federal Council approved all of the corresponding amendments to the COVID-19 Hardship Ordinances 2020 and 2022, to make changes.
The new provisions do not apply to corporations or general partnerships, which have greater flexibility than sole proprietorships to avoid liquidation and if the cantonal legal bases would allow for it, all the new provisions can be applied with retroactive effect.
The press release also contained some links to the new amending ordinance, as well as providing two commentaries on the 2020 and 2022 COVID-19 Hardship Ordinances.
On Nov. 27, SWI GVT allowed distribution of liquidation dividends.
SWI GVT said distribution of profits from the liquidation of individual businesses are no longer going to be considered a violation of the COVID-19 hardship aid's dividend ban.
Purpose
Companies that have received COVID-19 hardship aid are not allowed to distribute dividends for 4 years, by adopting motion 23.3842 liquidation dividends are excluded.
For most companies that benefited from hardship aid, the ban on paying dividends expires at the end of 2024; liquidation profits are excluded regardless of their reasons.
Implementation is focused on sole proprietorship; abusive fund withdrawal is banned.
To implement the motion, an adaptation of the COVID-19 Hardship Ordinance 2020 (SR 951.262) and the COVID-19 Hardship Ordinance 2022 (SR 951.264) is necessary.
The Federal Council will make these adaptations by the end of Apr. 2025.
Apr. 2025 Ordinances Approved
On Apr. 2, 2025, SWI GVT confirmed liquidation profits of sole proprietorships will no longer give rise to a request for reimbursement from the Confederation to the cantons.
At its meeting on Apr, 2, 2025, the Federal Council approved all of the corresponding amendments to the COVID-19 Hardship Ordinances 2020 and 2022, to make changes.
The new provisions do not apply to corporations or general partnerships, which have greater flexibility than sole proprietorships to avoid liquidation and if the cantonal legal bases would allow for it, all the new provisions can be applied with retroactive effect.
The press release also contained some links to the new amending ordinance, as well as providing two commentaries on the 2020 and 2022 COVID-19 Hardship Ordinances.
