The tax authority’s statement came in response to an inquiry by Világgazdaság, highlighting that the conditions under which the money was distributed are crucial. Despite facing multiple proceedings, Mobilfox continues to enjoy unwavering popularity on TikTok.

The exact circumstances of the cash distribution at the event hosted by Mobilfox remain unknown, the NAV responded to our inquiry. As reported, a "rain of money" descended upon bystanders at Deák Square on Saturday afternoon. Roland Szépréthy, a Mobilfox influencer, scattered two million forints from the top of the company's office following a disagreement with his boss: Kevin Diller, the founder of the company, allegedly fired Szépréthy, who then demanded a 25 percent stake or what he considered its equivalent, one hundred million forints.

The NAV remarked that, in general, every income of an individual is taxable unless exempt by law. The circumstances of the benefit and whether it was provided by an individual or a payor affect the tax liability.

However, the question remains as to in what capacity Szépréthy scattered the two million in cash. According to the NAV, if the cash was distributed by an individual to other individuals, then this free cash benefit could be considered tax-exempt income for the individuals.

If, on the other hand, the cash benefit was provided by a payor to individuals, it is considered other income within the combined tax base of the individuals, subject to the provisions of the Personal Income Tax Act. The rules of the Social Contribution Tax Act would apply to the payor for any other income granted to an individual.

The NAV emphasized that the tax liability could only be determined based on detailed information about the benefit, thus they could not provide more specifics at this time.

Public Outrage and City Hall Action Following the Incident

While the NAV has not yet investigated, it appears that Mobilfox will not escape consequences for actions that involved trampling flower beds and endangering youths:

Mobilfox will face three proceedings due to the controversial PR stunt last Saturday.

The Mayor's Office will not overlook the incident, intending to pursue proceedings against Mobilfox. Deputy Mayor Kiss Ambrus detailed the consequences of the company's advertising ploy. Firstly, he announced that a fine for illegal use of public space would be imposed swiftly, whose amount was not disclosed upon inquiry by Világgazdaság, but confirmed to be significant.

"I do not know if the influencers will have the courage to go to court after this. I hope they apologize and pay," he added. Mobilfox had not even sought prior approval for the event. The Budapest Public Utilities will bill the cost of restoring the damaged flower beds, and the city has approached the government office to initiate proceedings against Mobilfox for unauthorized advertising activities.

Founder Turns Mobilfox into Success as a Teenager

Founded by Kevin Diller in 2017 at the age of 15, Mobilfox gained fame for its indestructible phone cases and catchy advertisements, and is now present in eleven countries. According to the latest public data from 2022, Mobilfox reported a revenue of 4.2 billion forints and a net income of 210 million forints.

Mobilfox's aggressive marketing tactics have been divisive; besides the recent cash scattering event, they have:

* Dropped phones from airplanes,

* Conducted breakage tests with pedestrians,

* And often scared the elderly during shopping trips.