LEGAL BULLETIN

I. Judgments of the European Court of Justice

Judgment of the European Court of Justice of 25.06.2020 in Cases C-762/18 and C ‑ 37/19

The European Court of Justice came up with its decision of 25.06.2020 in Cases C-762/18 and C ‑ 37/19, according to which a worker who was unlawfully dismissed and later reinstated in accordance with national law, following the annulment of his dismissal by a court decision, shall be entitled to paid annual leave for the period from the date of dismissal to the date of his reinstatement. This worker is entitled to cash compensation for unused paid annual leave for the period from the date of the unlawful dismissal to the date of his reinstatement.

II. Draft bills and discussions

A draft bill for amending the Non-Profit Legal Persons Act

A draft bill for amending the Non-Profit Legal Persons Act was published on the website of the National Assembly on 1 July 2020. The bill stipulates that non-profit legal entities are obliged to declare foreign funding over BGN 1,000, with the exception of EU funding. The deadline for declaration is 7 days as of the date of funding.

The declaration is entered in the Register of non-profit legal entities financed from abroad.

It is envisaged that the Minister of Finance or a person authorized by him shall assign the performance of a financial inspection to a non-profit legal entity pursuant to the State Financial Inspection Act.

The bill provides for property sanctions under the State Financial Inspection Act in case of non-fulfillment of the obligation to declare, as well as registration of “temporarily suspended status in public benefit”.

Amendments to the Counter-Corruption and Unlawfully Acquired Assets Forfeiture Act are also envisaged, under which the chairmen and members of the management bodies of non-profit legal entities that have received funding from a foreign state or foreign natural or legal persons will have to submit declaration of incompatibility and declaration of property and interests.

If the legislative procedure is successfully completed, the provisions should enter into force on 01.01.2021.

A draft bill for supplementing the Obligations and Contracts Act

On July 22, 2020, the National Assembly adopted a Bill supplementing the Obligations and Contracts Act at first reading. A second vote on the introduction of the absolute 10-year limitation period is forthcoming.

We remind you that on 25.06.2020 a draft bill for supplementing the Obligations and Contracts Act was submitted. The amendment envisages the creation of a new art. 112a, according to which upon expiration of the 10-year limitation period all receivables against individuals shall be extinguished, regardless of its interruption, except in the cases when the obligation is deferred or rescheduled. Exceptions to the application of the absolute 10-year limitation period are provided for obligations of individuals executing commercial activities as sole traders, as well as for obligations arising from tort and unmerited gain.

III. Judgements of the Bulgarian courts

Decision of the Constitutional Court of the Republic of Bulgaria on a constitutional case № 14 of 2019.
(promulgated, SG No. 61 of 10.7.2020)

The Constitutional Court of the Republic of Bulgaria ruled decision No. 8 of 2020 on constitutional case No. 14 of 2019.

The case was initiated at the request of the Supreme Bar Council to establish the unconstitutionality of Art. 102, para. 4 of the Value Added Tax Act (VAT), (promulgated, SG No. 63 of 4 August 2006, last amended and supplemented, SG No. 52 of 9 June 2020). The request alleges contradiction of Art. 102, para. 4 of the VAT Act with Art. 4, para. 1 and para. 2, Art. 5, para. 4, Art. 6, para. 2, Art. 17, para. 3, Art. 19, para. 2, Art. 60, para. 1 of the Constitution.

The Constitutional Court rejected the proposal to declare the above-mentioned provision of the VAT Act unconstitutional, as it did not contradict the Constitution.

The motives of the court, as well as the special opinions of Judges Atanas Semov and Krassimir Vlahov, can be found at the following address:
http://www.constcourt.bg/bg/Acts/GetHtmlContent/5a778e21-9816-4641-914b-fcbbd23dfdc1

If you have any questions regarding our legal bulletin or other topic of interest, please do not hesitate to email us at office@taschevapartner.com.

Comments are closed.

Web design and development by Orbis Agency