Information Note on the Court’s case-law 221

August-September 2018

Tulokas v. Finland (communicated case) - 5854/18

Article 1 of Protocol No. 12

National legislation providing, in certain situations, for higher taxation of pension income than earned income: communicated

Article 14

Discrimination

National legislation providing, in certain situations, for higher taxation of pension income than earned income: communicated

[This summary also covers the communicated case of Taipale v. Finland , 5855/18]

The two applicants retired and started receiving old age pension respectively in 2004 and 2012. From 1 January 2013, amendments in the Income Tax Act ente red into force. An additional tax of 6% was imposed on pensioners whose annual pension exceeded EUR 45,000. The amendment was of a permanent nature. The revised Act also imposed an additional tax of 2% on employed tax-payers whose annual income exceeded EU R 100,000. However, that amendment was of temporary nature and only applied for the tax years of 2013-2015. The aims of the amendments were to collect taxes from those whose ability to pay taxes was the highest; to diminish the tax treatment gap between pe nsions and income received from employment; and to give an incentive for older people to stay longer in working life.

The applicants’ annual pensions exceeded the threshold of EUR 45,000. In 2013 and 2014 Mr Taipale was charged around EUR 2,000 in additio nal taxes, while Mr Tulokas – around EUR 3,000. Their complaints were dismissed.

Communicated under Articles 13 and 14 of the Convention and Article 1 of Protocol No. 12.

© Council of Europe/European Court of Human Rights This summary by the Registry does not bind the Court.

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