Credit-financed pension
Hello,
In 1997, as part of a credit-financed pension plan, I signed the following contracts with Sparenta:
I took out a Swiss franc loan of approximately 130,000 euros and used that money to purchase a pension insurance through a one-time payment. I was able to deduct the loan interest and the discount as advertising expenses from taxes. The plan was to repay the loan in 2011 by accumulating funds in a stock fund. However, everything went wrong. The currency, the pension payout, and the fund's performance were unfavorable. To repay the loan in 2011, I would have had to finance several tens of thousands of euros. Therefore, I terminated the entire concept, meaning I sold the pension rights and the fund shares and had to finance an additional 15,000 euros. Now I only have one concern: how likely is it that the tax office will want the tax benefits back? I don't need information on how it should theoretically be, but rather a practical answer. How will the tax office find out that the concept has been unwound?
Thank you in advance.
Kind regards,
Bruno S.
