On 29 July 2014 the Constitutional Tribunal issued a judgment concerning tax on income from so called undisclosed sources.
The Tribunal ruled that provisions of the Act on Personal Income Tax concerning taxation of income from undisclosed sources with a rate of 75% in the wording applicable as of 1 January 2007 are unconstitutional. At the same time the Tribunal deferred the entry of the judgment into force by 18 months.
The Constitutional Tribunal also emphasized that admissibility of resuming tax proceedings shall only occur upon the expiry of the deferment period, if the legislator previously does not amend or repeal a given provision.
Everyone, with respect to whom the questioned provisions are applicable, may have a chance for the final decision to be repealed, however, in the Tribunal’s opinion, this depends on individual assessment of a given case.