Deduction for purchase into occupational pension plan is permissible

Facts

The appellants A.A. and B.A. are domiciled in U./SO. A.A. operated a farming business, which he sold in 2013. Subsequently, he was employed. In the 2016 tax year, A.A. received capital payments from the restricted private pension plan (Pillar 3a) in the total amount of CHF 93,693.10 and made a purchase into the occupational pension plan (Pillar 2) in the amount of CHF 93,000.--. The Tax Office of the Canton of Solothurn refused the deduction for the purchase into Pillar 2 for both the direct federal tax and the cantonal and municipal taxes.

Considerations

The Federal Supreme Court holds that the assessment of the capital payments from Pillar 3a is legally binding and cannot be subsequently amended. The capital payments must therefore be treated as taxable income from pension provision pursuant to Art. 22 para. 1 DBG. The deduction of the purchase into Pillar 2 under Art. 33 para. 1 lit. d DBG cannot be denied to the appellants for either the…