Facts
The Federal Tax Administration (ESTV) filed an administrative court appeal against the decision of the Federal Tax Appeal Commission of the Canton of Zurich, which had classified a lump-sum payment of CHF 119,565 gross made to the taxpayer [A.B.] in connection with his dismissal as tax-exempt. The Federal Court overturned the decision of the lower instance and reinstated the tax assessment decision of the tax commissioner, according to which the lump-sum payment is subject to ordinary taxation.Considerations
The Federal Court held that the lump-sum payment made by the employer to the taxpayer cannot be attributed to occupational pension provision and is therefore not tax-exempt under Art. 24 let. c of the Federal Act on Direct Federal Taxation (DFTA). Although the payment was intended to compensate for any gaps or losses in the taxpayer's occupational pension provision, it was originally not tied to the pension provision, but was only to be allocated to it in the future. This excludes…