Facts
The dispute lies in whether the appellant's income from participations in various foreign partnerships (Limited Partnerships, LP) in the years 2003 to 2005 should be classified as income from self-employment within the meaning of Art. 9 para. 1 AHVG and Art. 20 para. 3 AHVV, and thus be subject to AHV (Old Age and Survivors' Insurance) contributions. The appellant resided in Switzerland until September 2005 and had been registered as self-employed with the Compensation Fund of the Canton of Zurich since 2002.
The cantonal court affirmed the obligation to pay contributions on the income from the participations in the LPs based on Art. 20 para. 3 AHVV. The appellant challenges this decision and requests that the income subject to contributions from self-employment for the years 2003 to 2005 be set at zero each time.
Considerations
The Federal Supreme Court dismisses the appeal. It examines the legal question of whether the disputed income constitutes contributory earned income or non-contributory capital income with full cognition. The factual findings of the lower instance are only subject to limited review.
The Federal Supreme Court adheres to its established case law, according to which income from unincorporated associations directed at a commercial purpose is generally subject to AHV contributions based on Art. 20 para. 3 AHVV, regardless of any personal work performed. A participation through capital investment is sufficient and is considered a legally fictitious exercise of an economic activity.
While Limited Partnerships (LP) are primarily collective investment vehicles without entrepreneurial activity, like the Limited Partnership…