Facts
D., born in 1948, is self-employed. By decision of May 5, 2006, the Compensation Fund of the Canton of Aargau obliged him to pay his personal AHV/IV/EO contributions for the year 2003 in the amount of CHF 41,077.20, including administrative costs. After deducting the advance contributions made, he was invoiced an amount of CHF 14,198.-, which he paid on May 31, 2006. On June 9, 2006, the Compensation Fund issued a default interest decision of CHF 1,005.70, corresponding to an interest rate of 5% on the amount of CHF 14,198.- for 510 days. In response to the insured person's objection, the Compensation Fund upheld the obligation to pay default interest in its decision of June 27, 2006.
The Insurance Court of the Canton of Aargau dismissed the appeal filed against this. D. then filed an appeal in public law matters with the aim of having the lower court's decision and the objection decision overturned.
Considerations
The Federal Court dismissed the appeal. It held that the implementing provisions of the AHVV on the obligation to pay default interest continue to apply even after the entry into force of the ATSG on January 1, 2003. Pursuant to Art. 41bis para. 1 let. f AHVV, self-employed persons are required to pay default interest on personal contributions to be equalized if the advance contributions are at least 25% below the actually owed contributions and are not paid by January 1 of the calendar year following the contribution year.
The Federal Court rejected the appellant's arguments. The obligation to pay default…