Income from a business or permanent establishment in a non-contracting state is not pension income

Facts

A., born in 1971, is the owner of a hotel and wellness business in U. The resulting income was initially treated by the Compensation Fund of the Canton of Zurich as contributory income from self-employment. However, it subsequently reclassified the income as (also contributory) pension income of a non-employed person. On this basis, it obliged A. by decisions of June 6, 2017, to pay social security contributions of CHF 1,448.60 and CHF 3,137.80 for the years 2012 and 2013 respectively.

The Social Insurance Court of the Canton of Zurich upheld the appeal filed against this and set aside the objection decision. The Compensation Fund of the Canton of Zurich filed an appeal in public law matters, requesting the confirmation of the decisions of June 6, 2017.

Considerations

The Federal Supreme Court dismisses the appeal. The income in question from the hotel and wellness business in U. does not constitute actual or fictitious pension income. In this respect, the guidelines of the Federal Social Insurance Office on compulsory insurance in the AHV/IV (WVP) in Rz. 1038.1 are unlawful.

The law must be interpreted primarily according to the wording, meaning and purpose, as well as the underlying values. The term "pension income" in Art. 28 para. 1 AHVV excludes a direct connection to one's own gainful employment. Rather, it is…