STATE`S RIGHT TO TAX IN THE LIGHT OF THE EUROPEAN CONVENTION ON HUMAN RIGHTS

Abstract

Tax policy is one of the most important instruments of governments, but it is rarely
assessed from a human rights perspective. Traditionally, taxation has been understood as a
fundamentally "economic" or "development-related" undertaking by which policymakers
generate revenue for socio-economic development. Therefore, fiscal policymakers are
concerned with the "economic" aspects of taxation, particularly maximization of tax revenue,
rather than non-economic aspects like human rights that, surprisingly, have remained secondary
preoccupations. However, this perception has been rapidly changing in the last decade. In
circumstances with an increased economic inequality across the world, there is growing
recognition that tax policy matters for human rights and has implications for the citizens'
enjoyments of these rights, worldwide.
Realizing rights requires resources. In this sense, tax revenue is the most important, the
most reliable and the most sustainable instrument to resource human rights in sufficient,
equitable and accountable ways. The realization of all human rights, likewise, is a core raison
d'être of government. It is through respecting, protecting and fulfilling civil, political, economic,
social, cultural and environmental rights that the state earns its legitimacy to tax. Moreover, taxes
remain the preeminent means through which governments collect revenues necessary to deliver
essential public goods and services and to protect rights.
A substantial number of tax cases have gone from national courts to the European Court
of Human Rights in Strasbourg. These applications are mostly based on Article 1 (protection of
property) of Protocol No. 1 to the Convention, which recognizes that a State is entitled “to
enforce such laws as it deems necessary … to secure the payment of taxes or other
contributions”, and Article 6 (right to a fair trial) of the Convention. One of the tax cases that
have been ruled by the European Court of Human Rights is the case of “EUROMAK METAL
DOO v. REPUBLIC OF MACEDONIA”. In this case, the Court unanimously held that there had
been a violation of Article 1 of Protocol No.1 to the European Convention on Human Rights
(Protection of property). This paper will focus on legal analysis on this judgment and its impact
on Macedonian tax law.