Denial of the tax deduction for the repurchase of insurance years within a supplementary occupational pension plan

Facts

X., an independent lawyer-notary, concluded two occupational pension plans with the LPP Foundation Y. The first contract, for mandatory pension provision, covers the risks of old age, survivors, and disability. The second contract, for supplementary pension provision, only provides for the release from premium payments in the event of disability.

In 2000, X. repurchased 430,000 francs of insurance years within the supplementary pension plan, and then withdrew this amount within five days to finance the acquisition of a family home. The Cantonal Tax Authority refused the tax deduction of this repurchase, considering it to be tax evasion.

Considerations

The Federal Tribunal ruled that the supplementary pension plan did not comply with the principle of insurance, as it only provided for the release from premium payments in the event of disability. Consequently, the repurchase of insurance years carried out in this context was not tax deductible.

Furthermore, the Federal Tribunal considered that the procedure chosen by X. constituted tax evasion, insofar as the repurchase of insurance…