CASE OF P.G. v. HUNGARY
Violation of Article 1 of Protocol No. 1 - Protection of property (Article 1 para. 1 of Protocol No. 1 - Deprivation of property;Peaceful enjoyment of possessions)
András Sajó;Helen Keller;Robert Spano
6. The applicant was born in 1952 and lives in Budapest. 7. In 2006 the applicant concluded an employment contract with a State-owned financial institution. His contract was amended in 2009 stipulating, in case of ordinary dismissal, severance payment equal to one month’s salary and remuneration corresponding to a notice period of eight months. 8. On 22 June 2010 the applicant’s employment was terminated by mutual agreement. Under this agreement, on 25 June 2010 his former employer paid him, after taxes, a net amount of 17,994,127 Hungarian forints (HUF) (approximately 58,800 euros (EUR)), amounting to seven 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 14,162,433 as special tax, until 20 May 2011.