Tax, finance and strategy advisory firm: a costed case in Geneva

Three engagements, CHF 61 400 in annual fees, and not a single point of contact who saw the whole picture. That was the starting situation in this case. It is anonymised: I name neither the company nor its partners.

The company is a Geneva Sàrl (limited liability company) active in technical distribution, with 14 employees and taxable profit of CHF 410 000. The local fiduciary kept the books and the VAT returns for CHF 18 400 a year. A tax lawyer billed tax optimisation by the hour, at between CHF 380 and 450, or roughly CHF 21 000 over the financial year. A strategy consultant, on a fixed fee of CHF 22 000, was preparing the reorganisation of the family group.

Coordination also cost time. The partners spent about 9 hours a month relaying information from one adviser to another. The consultant's figures did not match the fiduciary's. The lawyer had never seen the cash-flow plan.

The starting question was simple: which firm can handle tax, corporate finance and strategy without the three narratives contradicting one another?

The restructuring was decided on the basis of the strategy engagement alone. It cost CHF 38 000 more than planned.

The consultant recommended splitting the business: an operating company and a property company holding the premises. Logical from an operational standpoint. But no one costed the profit tax on the transfer. Geneva cantonal and communal profit tax, together with federal tax at 8.5% (art. 68 LIFD), applies to hidden reserves if the conditions for tax neutrality are not met (art. 61 LIFD, art. 24 LHID). The five-year lock-up period on holdings had not been read.

Three flaws compounded one another:

• Profit tax underestimated: CHF 21 500 of unanticipated tax charge on a hidden reserve taken over at book value.

• Poorly calibrated provision: the fiduciary had set up a risk provision of CHF 15 000, whereas the actual tax liability exceeded CHF 36 000. The result for the year was overstated.

• Value of the business: the multiple used by the consultant ignored this charge. The value of a possible transfer was overstated by about CHF 16 500.

Total cost of the mistake: CHF 38 000. Part of it was recoverable, but at the price of three months spent reworking the file and additional fees. The error is mine: I approved the timetable without requiring a prior tax memorandum.

Five criteria were applied, in this order: genuine coverage of the three disciplines, a single signatory, clear pricing, independence, and the ability to produce a costing before the decision.

Three categories of firm were met. No brand is ranked here.

Local fiduciary. It covers bookkeeping, VAT, the tax return and payroll. Restructuring advice is occasional, and corporate finance (valuation, financing plan) is rarely available in-house. Fee observed in 2026: CHF 130 to 220 per hour, or annual fixed fees of CHF 8 000 to 25 000 for an SME of this size.

Independent specialist firm. A team of 8 to 40 people, with tax specialists, qualified chartered accountants and financial analysts under one roof. It handles restructuring, valuation, succession and tax planning within a single file. Fee observed: CHF 220 to 380 per hour, or an engagement fixed fee of CHF 15 000 to 45 000 for an SME restructuring.

International audit and advisory network. Coverage is complete, with separate departments. Internal coordination remains the client's responsibility on small engagements. Fee observed: CHF 350 to 550 per hour. For a profit of CHF 410 000, the ratio of team cost to what is at stake is unfavourable.

One checkpoint often decides the choice: ask who signs the summary memorandum. If three people from three departments sign, contradiction is possible. If a single partner answers for the whole, it is far less likely. On the structure of the SME itself, see also our costed guide to starting a business in French-speaking Switzerland, which details the trade-offs in choosing a legal form.

We chose an independent specialist firm, on a fixed fee of CHF 32 000 for the restructuring engagement, plus CHF 24 000 a year for ongoing accounting and tax support. The total annual cost of advice fell from CHF 61 400 to CHF 56 000, a reduction of 8.8%.

The result reads before and after:

• Tax charge on the transfer: from CHF 21 500 unanticipated to CHF 0, thanks to a transfer at book value meeting the conditions of a tax-neutral restructuring (art. 61 LIFD) and a timetable aligned with the lock-up period.

• Provision: recalibrated from CHF 15 000 to CHF 36 000 before the year-end close, eliminating the CHF 21 000 gap in the result.

• Annual tax optimisation: an occupational pension (LPP) buy-in of CHF 60 000, accelerated depreciation on CHF 85 000 of equipment and an adjustment to the director's salary reduced tax by CHF 29 400 in the following financial year, i.e. 17% of the previous charge.

• Partners' coordination time: from 9 hours to 2 hours a month.

• Restructuring timeline: 7 months, against 13 months for the first attempt, including 3 months spent reworking the file.

Over 24 months, the net gain reaches about CHF 74 000, after fees. The applicable rates and scales are published by the Federal Tax Administration and by the Geneva tax authority. The general framework is set out in our article on Swiss taxation in Geneva and Vaud.

Source: Art. 61 LIFD, art. 68 LIFD, art. 24 LHID — fedlex.admin.ch

An integrated firm is justified as soon as a project affects both taxation and the value of the business. My working thresholds, drawn from this case and a few others:

• Taxable profit above CHF 250 000, or turnover above CHF 3 million.

• A restructuring, split, family succession or investor entry planned within the next 24 months.

• At least two advisers already engaged for combined fees above CHF 30 000 a year.

Before signing, ask these five questions:

1. Who signs the final summary memorandum, and takes responsibility for it? 2. Are profit tax and withholding tax costed in writing before the decision? 3. Does the fixed fee include the valuation of the business and the tax provision? 4. What is the make-up of the assigned team, and how many partner hours are included? 5. Does the firm also act as the company's statutory auditor? Independence is to be checked (art. 728 CO).

This set-up is not justified in three cases. A Sàrl whose profit stays below CHF 100 000 with no structural project: a local fiduciary is enough, see our reminder on accounting services. A purely legal project, such as a shareholders' agreement. A heavy cross-border transaction, where an international network may become relevant again despite its fees. Entities can be verified in the commercial register via Zefix.