Legal issue: whether the contested regulation is constitutional, if according to it the insurance payments under the contracts of voluntary long-term life insurance made by insurance companies (insurers) after 1 January 2008 are included into the tax base for the purposes of personal income tax as an income of the insurants, whereas insurance contributions transferred to insurance companies by their employers before 1 January 2008 were also subject to personal income tax, i.e. the tax was in fact levied twice, although the real income in the form of insurance payment was received by the insurant only once.
Ratio decidendi: The Court has deemed the regulation in question to be unconstitutional, pointing out that it violates the principles of equality and commensurability of taxation, as well as the principle of keeping up the citizens’ confidence to law and actions of the State in relation to taxpayers. The Court has obligated the federal legislator to amend the Tax Code accordingly.