As in all jurisdictions, discretion by authorities plays a role in the administration of tax law in Hungary. The legacy of a socialist past and different national legislative approaches have made this exercise of discretion somewhat different from that in other market economies, however. The tax...

Hungary was the first post-socialist country in eastern Europe to adopt a general anti-avoidance rule (GAAR). The original GAAR adopted in 1990, best described as a "form and substance" GAAR, was supplemented by a second GAAR in 1998, best described as a "proper use of rights" GAAR. The tax...