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European Court of Human Rights Approves of Hungarian Tax Defaulter List

European Court of Human Rights Approves of Hungarian Tax Defaulter List

Hungary
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Hungarian National Tax and Customs Authority regularly publishes the list of major tax defaulters for failing to fulfil their tax obligations in Hungary. The list also contains private data of the defaulters, including, inter alia, information on tax arrears and debts and their home address. In a recent case (L.B. v. Hungary – 36345/16), European Court of Human Rights concluded no violation and confirmed the approach of Hungarian tax authority as justified.

Hungarian tax legislation provides for the publication of personal details of major tax defaulters and major tax evaders (those whose tax arrears and tax debts exceeded HUF 10 million, approximately EUR 30,000). Publication was subject to the condition that the affected persons had failed to fulfil their tax obligations over an extended period of time (180 days).

Hungarian tax authority had published personal data of L.B. in connection with his failure to contribute to public revenue, accordingly, L.B claimed that his right to privacy had been violated and had referred to the general public-shaming effect of appearing on the list.

European Court of Human Rights considered whether this interference (if any) was lawful, followed a legitimate aim and whether it was necessary. In this regards, the Court found that the measures aimed to improve discipline regarding tax payment and thereby followed the legitimate goal of protecting the economic well-being of Hungary. Moreover, the aim of disclosure of the applicant’s data under a list of “major tax evaders” had been to protect the particular interests of third parties.

In light of the above, European Court of Human Rights established that making such information public could not be considered a serious intrusion into the personal sphere. Making his personal data public had been justified by furthering the State’s legitimate interest.

By Balint Zsoldos, Head of Tax, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
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  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com