Facts
On March 25, 1988, the Tax Office of the Canton of Zurich reported to the Compensation Fund of Zurich Employers that Arthur [F.] had an income from self-employment of CHF 109,713 in 1985 and CHF 130,143 in 1986. Based on this and after offsetting the personal contributions, the Compensation Fund determined an average annual income of CHF 127,110, on which it levied personal social insurance contributions from the insured person for the years 1988 and 1989.
Arthur [F.] argued to the AHV Appeals Commission of the Canton of Zurich that, in accordance with Art. 18 para. 3 AHVV, contributions by self-employed persons to recognized forms of tied self-provision (Pillar 3a) should be deducted as business-related expenses from the gross income. In his case, this contribution amounted to CHF 17,402 in 1986.
The Appeals Commission dismissed the appeal.
Considerations
According to Art. 9 para. 2 AHVG, the Federal Council may, if necessary, allow further deductions from the gross income from self-employment. In Art. 18 para. 3 AHVV, the Federal Council has stipulated that personal contributions to occupational pension schemes (Pillar 2) can be deducted from the gross income to the extent that usually corresponds to the employer's share of such contributions.
However, neither Art. 9 para. 2 AHVG nor Art. 18 para. 3 AHVV provide for the contributions of the self-employed to Pillar 3a (other recognized forms of pension provision serving occupational provision) to be deducted from the gross income. Pillar…