Facts
Master Butcher [S.] is self-employed and must therefore pay social security contributions to the Compensation Fund of the Association of Swiss Master Butchers. Based on his military tax return for the 18th period dated April 25, 1976, the Compensation Fund set his personal AHV/IV/EO contributions for the years 1976 and 1977 at an annual amount of CHF 8,908.80 from a pure earned income of CHF 100,105. On August 16, 1976, [S.] applied for a reduction of the annual contribution to CHF 4,000, as his income situation had changed significantly in 1976. The Compensation Fund rejected the application on August 23, 1976.
[S.] filed a complaint against this decision with the AHV Appeals Commission of the Canton of Zurich and claimed that his income was no longer CHF 113,000, but only between CHF 70,000 and CHF 90,000. The Appeals Commission dismissed the complaint on March 21, 1977.
[S.] then filed a timely administrative court appeal with the Federal Insurance Court and renewed his request for a reduction of his social security contributions to CHF 4,000. As justification, he stated that due to the divorce, he had to acquire the business property, which had resulted in all available funds being invested in this property or paid out to the divorced wife.
Considerations
The Federal Insurance Court states that in assessing the reasonableness of the contribution payment, the economic circumstances of the contributor at the time of the issuance of the decision are generally to be taken as a basis. However, the judge can also take into account more recent facts in…