CASE OF SIKUTA v. HUNGARY
Violation of Article 1 of Protocol No. 1 - Protection of property (Article 1 para. 1 of Protocol No. 1 - Deprivation of property)
András Sajó;Helen Keller;Robert Spano
6. The applicant was born in 1964 and lives in Budapest. 7. On 1 July 2002 the applicant concluded an employment contract with a State-owned financial institution. 8. On 6 May 2010 the applicant’s employment was terminated by mutual agreement with effect from 30 July 2010. Under this agreement, on 17 May 2010 the employer paid the applicant, after payroll burdens, a net amount of 4,997,020 Hungarian forints (HUF) (approximately 16,100 euros (EUR)), including his salary due until the termination of his employment, payment for unused annual leave and an additional five months’ salary. 9. Under new legislation (see paragraph 10 below) the gross amount corresponding to the above payment was subsequently taxed at a 98% rate in its part exceeding HUF 3.5 million; the income tax and social security contributions already paid (see paragraph 8 above) were deducted from the tax payable. Thus, the applicant had to pay an additional HUF 2,144,160 (approximately EUR 6,900) as special tax, until 20 May 2011.