Legal issue: the constitutionality of norms which make the amounts of pensions paid by non-State pension Funds after 1 January 2005, subject to income tax, regardless of the fact that pension contributions to such funds made by employers before 1 January 2005 were also taxed, i.e. the tax have been levied twice, whereas the real income in the form of pension payments the retired employee is entitled to receive only once.

Ratio decidendi: the Court pronounced the regulation in question to be contradicting the Constitution, having pointed out that it violates the constitutional principles of equality and proportionality of taxation, of preserving the citizen’s trust in law and treatment by the State of taxpayers belonging to one and the same category. The legislator was prescribed to amend the current laws correspondingly.