Facts
T., born on March 30, 1915, was self-employed as a mason and was insured as such with the Cantonal Compensation Fund of the Canton of Vaud. From April 1, 1980, he received an old-age AVS pension, but did not end his self-employment until December 31, 1988. On September 21, 1989, T. realized a capital gain of 442,000 Swiss francs, which was confirmed by the tax authorities. Thereupon, the Compensation Fund set a special contribution of 36,801.90 Swiss francs (including administrative costs) on this capital gain on March 9, 1992 and additionally demanded 24,938.80 Swiss francs in regular AVS/IV/EO contributions from T.
T. filed a complaint against this decision with the Insurance Court of the Canton of Vaud and requested its annulment. The Cantonal Court partially upheld the complaint and reduced the special contribution by 3,160 Swiss francs, as it considered part of the capital gain to be tax-free pension income pursuant to Art. 6quater OASI. However, the Federal Council had not adopted this solution, so the Cantonal Court was not allowed to substitute its discretion for that of the administrative authority.
Considerations
The Federal Court decision makes it clear that the special contribution on capital gains cannot be calculated based on the duration of self-employment. Rather, the special contribution covers the overall economic success of the business, regardless of the actual exercise of the…