Introduction of 98% tax rate—whether a breach of European Convention on Human Rights
In May 2011 the Hungarian Parliament enacted legislation which provided that payments of severance pay exceeding 2 000 000 Hungarian forints paid to public sector workers after 1 January 2010 should be taxed at 98%. In NKM v Hungary (ECHR Case 66529/11) a woman who had been made redundant from her post in the civil service in May 2011 lodged an application with the European Court of Human Rights. The ECHR held that the legislation was a breach of Article 1 of the First Protocol of the European Convention on Human Rights finding that it was disproportionate and had deprived the applicant ‘of the larger part of a statutorily guaranteed acquired right’. It awarded the applicant damages of €11 000 and costs of €6 000.
Introduction of 98% tax rate—whether a breach of European Convention on Human Rights
In May 2011 the Hungarian Parliament enacted legislation which provided that payments of severance pay exceeding 2 000 000 Hungarian forints paid to public sector workers after 1 January 2010 should be taxed at 98%. In NKM v Hungary (ECHR Case 66529/11) a woman who had been made redundant from her post in the civil service in May 2011 lodged an application with the European Court of Human Rights. The ECHR held that the legislation was a breach of Article 1 of the First Protocol of the European Convention on Human Rights finding that it was disproportionate and had deprived the applicant ‘of the larger part of a statutorily guaranteed acquired right’. It awarded the applicant damages of €11 000 and costs of €6 000.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")