Facts
A and B [X.] filed an appeal with the Federal Supreme Court against decisions of the Administrative Court of the Canton of Thurgau regarding state and municipal taxes as well as direct federal taxes for the years 2004 to 2006. They requested that their taxable income be reduced by the contributions made to occupational pension schemes during those years. The Federal Supreme Court dismissed the appeals.Considerations
The Federal Supreme Court stated that according to its case law, contributions to occupational pension schemes cannot be deducted from taxable income if tax evasion is involved. This is particularly the case if pension assets are withdrawn shortly after the contributions, without the aim of actually improving the insurance coverage. In the present case, although not the entire capital was withdrawn shortly after the contributions, but only a portion was paid out as a pension, the Federal Supreme Court nevertheless considered the arrangement to be abusive, as the contributions were not made to improve the pension provision, but to minimize taxes.
Furthermore, the Federal Supreme Court stated that according to Art. 79b(3) of the…