The tax office audits the pension fund: why?

More and more owners of public limited companies (AGs) or private limited companies (GmbHs) are finding that the tax authorities are auditing their pension funds. If the authorities classify certain pension benefits as ‘monetary benefits’, this can have significant financial consequences. In such cases, the owners are considered to be better off than employees without a stake in the company. The accusation is then that profits are being distributed covertly by paying contributions into the pension fund without being taxed accordingly.

Common reasons for objections by the tax office:

• The savings contributions made by owners are significantly higher in relation to their salaries than the contributions made by other employees.
• The employer pays a higher proportion of the savings contributions than stipulated in the pension fund regulations.
• Pension plans that only insure owners provide for purely employer-funded financing, which means that the employer pays all contributions.
• There are gaps between basic and executive pension provision in terms of insured wages. 

Consequences of complaints:

• Rejection of certain contributions by the tax authorities.
• Recalculation of savings contributions in accordance with industry standards.
• Additional payments of profit and income tax.
• Rejection of pension fund purchases, resulting in the loss of tax savings.
• Additional contributions to AHV and other social insurance schemes may become due.

Recommendation:

The pension solution should be reviewed regularly to avoid problems and costs. In some cases, a tax ruling is advisable. Professional advice helps to optimise the pension plan from a tax perspective and prevent objections.