Ruling by Swiss Federal Supreme Court
The Swiss Federal Supreme Court ruling (BGE 2C_658/2009 of 12 March 2010) stipulates that a buy-in in a pension fund can only be tax-deductible provided no lump-sum settlement is made from an occupational pension plan in the following three years.
The tax authorities will therefore probably permit the deduction of a buy-in only if there is no lump-sum settlement made from an occupational pension plan in the following three years. Any breach of this three-year restriction would result in a retrospective correction to the individual's tax assessment and the deletion of the deduction in question. This also affects early withdrawals for the purchase of residential property.
The three-year period according to Art. 79b (3) FSOPP also applies if the buy-in and the lump-sum withdrawal do not concern the same pension scheme or pension fund. An individual's overall pension situation is used as the basis for consideration ("consolidated view"; cf BGer 2A.408/2002 of 13 February 2004). Any buy-in violating the three-year period shall not be eligible for tax deduction even if the subsequent lump-sum withdrawal comes from a different pension scheme and/or pension fund (cf the analysis by the Swiss Tax Conference [Schweizerische Steuerkonferenz] of the Federal Supreme Court ruling of 12 March 2010 (2C_658/2009), dated 3 November 2010, retrievable -only in German- at http://steuerkonferenz.ch/downloads/analyse_bge_bvg_d.pdf).
Insureds must clarify this matter themselves with their local tax authorities.