Representation of AS Suntrade in Supreme Court Constitutional Review Case Concerning Tax Interest

RASK represented AS Suntrade in a legal dispute that resulted in a constitutional review procedure at the Supreme Court. The case focused on whether the interest rate set in the Taxation Act – 0.06% per day – is fair and in accordance with the Constitution.

In our client's view, the prevailing interest rate had become outdated and disproportionately high, given the economic conditions at the time of the dispute. The Supreme Court acknowledged that a high interest rate may, in certain cases, become excessively burdensome and even punitive. However, the court held that the legislature has the right to shape tax policy within a broad framework, and the current rate does not exceed constitutional limits.

The ruling helped clarify the objectives and boundaries of tax interest, emphasizing that the rate must be up-to-date, fair, and support legal certainty for businesses. This decision marks an important milestone in the development of tax interest practices and in balancing tax procedures.