Facts
This case concerns a public limited company (X AG) that carried out a capital increase without an increase in its assets, by issuing free shares. Among the beneficiaries of these free shares were six employees of the company, who were also shareholders.
The Old Age and Survivors' Insurance (AVS) Compensation Fund and the Cantonal Appeal Commission for AVS matters considered that the value of these free shares granted to the employee-shareholders constituted determining salary subject to AVS contributions, in accordance with Art. 7 let. c RAVS.
X AG appealed this decision to the Federal Insurance Court.
Considerations
The Federal Insurance Court ruled that the distribution of fully paid-up free shares from the company's equity did not represent a benefit subject to AVS contributions, in contrast to the withholding of anticipatory tax.
Indeed, this operation does not economically enrich the beneficiary shareholder, as their overall share in the company's assets is simply distributed over a greater number of securities. Furthermore, the allocation of these free shares is aimed solely at the shareholders and is not linked to the salaried activity they may exercise within the company.
Finally, the fact that the new shares were mainly granted to persons who are also employees of…