The case
The court decision is about the fiscal treatment of excessive contributions to pillar 3a (private pension provision) in Switzerland.
Source: Verwaltungsgericht Zürich, 4. Oktober 2023, 58.20023.59; rechtskräftig. / ZStP 4/2024, page 293 ff.
The commentary
If excessive contributions to pillar 3a have been made, they can be claimed back by the respective pension scheme, a claim that the tax payer must prove to the tax authority. If this is not done, the tax authority presumes that the excessive payments are not claimed.
In the present case the tax authority classified the excessive amount as “free savings” (pillar 3a) and the sum was added to the taxable assets.
The ruling is based on § 31 Abs. 1 lit. e StG (cantonal tax law) and aret. 33 DBG (Swiss federal law on direct tax).