Facts
The complainant [S.] , residing in the canton of [X.] , together with another person, owned two properties in the canton of Grisons in undivided ownership. The compensation office of the canton of Grisons determined the income subject to contributions from self-employment of the complainant for the years 2002 and 2003 at CHF 478,000 and CHF 1,033,600, respectively. This income resulted from the sale of the two properties. The complainant lodged an objection and later an appeal against these decisions.
The Administrative Court of the canton of Grisons dismissed the appeal. The complainant then lodged an appeal with the Federal Supreme Court and requested that the contested decision and the decision on the objection be set aside and that no OASIA-liable income from self-employment be determined for the years 2002 and 2003.
Considerations
The Federal Supreme Court examined whether the proceeds from the sale of the properties constituted income from self-employment or from private asset management. It found that the distinction between private asset management and self-employment is to be assessed on the basis of the overall circumstances.
The court pointed out that the mere management of one's own assets does not fall under the concept of self-employment within the meaning of Art. 9 para. 1 OASIA and Art. 17 OASIO. However, it also found that capital gains from the sale or realization of private assets, such as securities or properties, can also constitute income from self-employment, even in the case of non-accounting businesses, if and to the extent that they are based on commercial trading.
The court concluded that the lower court had…