Constitutional Court Rules On Predictability In Context Of Property Rights

The Constitutional Court recently considered a case where the first instance court ruled that VAT applied to the applicant, despite being presented with many court precedents stating otherwise (2013/3244). The Constitutional Court held that the applicant's constitutional property rights had been violated on the basis of unpredictability. It unanimously awarded the applicant's legal and attorney's fee be paid.

In the case, the tax authority levied an attachment on an individual's vehicle and real estate because the person had not submitted a VAT statement, nor paid the amounts allegedly due for the individual's lease of a canteen from a school council. The applicant initiated an action against the tax authority's decision. The first instance court ruled that the canteen was subject to VAT, despite the applicant presenting many prior court decisions supporting the applicant's claim.