Facts
The applicant, an independent farmer with four minor children, received family allowances for small-scale farmers in the amount of CHF 14,160 for the period from 1 April 1994 to 31 March 1996. The compensation fund of Lucerne recalculated the amount for this period and reduced the family allowances by one-third due to exceeding the income ceiling. It also determined the entitlement for the period from 1 April 1996 to 31 March 1997, offset this amount against the payments already made during the previous period, and claimed the sum of CHF 1,872 from the applicant.Considerations
The Federal Insurance Court examines whether the interest on the construction loan constitutes deductible interest expenses and from what point in time. It considers that the interest on the construction loan is in principle financing costs related to the construction of the building and must therefore be classified as expenditure for the acquisition or improvement of assets, and not as deductible interest expenses. However, the Federal Insurance Court considers that in the field of family allowances in agriculture, which is based on the actual economic situation of small-scale farmers, the interest on the construction loan should be considered as deductible interest expenses from the time the building is actually used, regardless of the date of consolidation of the construction loan.
Consequently, the compensation fund is not entitled to claim the reimbursement of the family allowances improperly paid for the period from 1 April 1994 to 31 March 1996. Furthermore, the Federal Insurance…