WHO IS A TAX LAWYER IN TURKEY?

A tax lawyer in Turkey is an expert who is knowledgeable about tax legislation and practices, providing legal support to protect taxpayers’ rights and resolve disputes with tax authorities. The complexity of the tax system in our country, the openness of legislation to various interpretations, and the possibility of different decisions by courts can create many issues for taxpayers. As a result of differing interpretations and practices between tax authorities and taxpayers, additional taxes and penalties may be imposed.

To handle such situations and effectively defend taxpayers’ rights, the expertise of a tax lawyer in Turkey is crucial. A tax lawyer represents clients in legal processes and helps taxpayers carry out their tax planning within the legal framework.

WHAT IS TAX LAW IN TURKEY?

Tax Law in Turkey is a branch of law that regulates all the rules regarding the taxes collected from individuals or institutions by the state and other public legal entities, based on public power, to finance public services and meet societal needs. This field covers the nature of taxes, methods of collection, the relationship between tax obligations and financial administration, the rights and responsibilities of the parties involved, taxation processes, and methods for resolving potential tax disputes in Turkey.

Tax Law in Turkey aims to both protect public order and fairly distribute the tax burden on individuals and institutions. In this context, it is shaped by the principles set out in the constitutional framework and ensures a balance between individuals’ property rights and public interest. Protecting the rights of taxpayers during taxation processes in Turkey, limiting the powers of the financial administration, and preventing actions beyond the legal framework are fundamental goals of Tax Law.

In Turkey, Tax Law also encompasses a wide range of areas, including administrative procedures applied during taxation, tax penalties, tax disputes brought to court, and international tax practices. For this reason, it plays an important role not only at the national level but also in international trade and economic relations today. Tax Law in Turkey provides legal guidance for both individuals and businesses while safeguarding the sustainability of the state’s financial structure. The primary tax regulation in Turkey is the Tax Procedure Law. Tax disputes in Turkey are governed by the provisions of the Tax Procedure Law, and legal proceedings are carried out under this law.

WHAT IS TAX CONSULTING IN TURKEY AND WHAT DOES IT INCLUDE?

Tax consulting in Turkey is a service that guides companies and individuals in carrying out their financial transactions in compliance with current tax legislation, aims to prevent potential financial risks, and optimizes tax processes. This consulting is crucial to avoid issues arising from the complexity of tax legislation and differences in interpretations encountered in practice, ensuring that obligations are fulfilled correctly.

Although companies aim to comply with financial regulations, they may face challenges in many areas due to a lack of uniform application and the open-ended nature of certain interpretations. In tax audits, companies may face criticism that their transactions do not comply with tax laws, leading to additional taxes and penalties. Such issues may stem from violations of tax laws or differing interpretations by tax inspectors.

Scope of Tax Consulting in Turkey:

• Compliance Consulting: Ensuring that a company’s financial transactions and accounting processes are aligned with the applicable tax legislation.
• Tax Planning: Identifying and implementing strategies to optimize the tax burden within the legal framework.
• Tax Risk Management: Identifying, analyzing, and preventing potential financial risks.
• Support in Audit Processes: Defending a company’s rights during tax audits and implementing effective legal and administrative appeal mechanisms against audit reports.
• Training and Awareness: Educating company employees and managers about changes in tax legislation and increasing awareness.
• Tax Dispute Resolution: Providing legal support in tax disputes with tax authorities and defending taxpayer rights.
• Local and International Corporate and Income Tax: Providing tax consulting services to ensure that companies fulfill their local and international corporate income tax obligations correctly.
• Withholding Tax: Ensuring that employers and other obligated parties calculate and declare taxes withheld correctly.
• Value Added Tax (VAT), Special Consumption Tax (SCT), Stamp Duty, Banking and Insurance Transaction Tax (BSMV), and Financial Support Fund (KKDF): Correctly calculating, declaring, and addressing issues related to these taxes.
• Inheritance Transfer Tax and Property Tax: Managing tax obligations arising from probate and real estate transactions and developing strategies for these taxes.
• Investment Incentives: Assisting in benefiting from investment incentive programs, obtaining incentive certificates, and managing the application processes.
• Year-End Inventory and Closing Procedures: Supporting companies in closing their financial year in compliance with tax regulations.
• Specific Consultation and Reporting: Providing advice and conducting research for companies facing specific issues within the scope of tax consulting.
• Exemptions and Discounts in Tax Laws: Managing processes related to legal exemptions and discounts to maximize benefits.

Tax consultancy services in Turkey not only help businesses fulfill their current tax obligations but also enable them to develop long-term financial strategies and operate more efficiently within the legal framework.

WHAT TAX LAWSUITS DOES A TAX LAWYER IN TURKEY DEAL WITH?

A tax lawyer in Turkey provides legal support in various tax disputes faced by taxpayers and represents them in judicial processes to resolve these tax disputes in Turkey. Tax law covers a complex and broad range of issues, including legal problems between the administration and the taxpayer as well as conflicts arising from the application of tax law in Turkey.

Tax lawsuits in Turkey are typically judicial processes aimed at resolving disputes between the taxpayer and the tax administration. In these cases, lawyers defend taxpayers’ rights and ensure that legal processes related to tax obligations are carried out correctly.

A tax attorney in Turkey offers legal support for the following types of cases:

• Tax and Penalty Notice Cancellation Lawsuits: Lawsuits filed to cancel notices sent by the tax administration to the taxpayer when they are legally invalid.
• Payment Order Cancellation Lawsuits: Lawsuits filed against payment orders issued for the collection of tax debts.
• Seizure and E-Seizure Lawsuits: Lawsuits filed to cancel actions related to seizures, e-seizures, precautionary seizures, and precautionary assessments.
• Cancellation of Special Procedure (Code) Actions: Lawsuits against actions related to the rejection of requests to be transferred to special procedures or general procedures due to the application of codes.
• Actions on Behalf of Legal Representatives and Partners: Lawsuits against payment orders, seizures, and sales actions issued on behalf of company representatives or partners.
• Use of Fake or Misleading Documents Lawsuits: Lawsuits to cancel VAT, corporate tax, income tax, or provisional tax assessments related to the use of fake documents.
• Failure to Submit Books and Documents: Lawsuits to cancel VAT assessments related to the failure to submit books and documents for examination.
• Vehicle and Real Estate Purchase-Sale Activities: Lawsuits concerning tax obligations, assessments, and penalties arising from vehicle and real estate transactions established by the tax administration.
• Tax Returns Submitted with Reservation: Lawsuits filed to cancel taxes and penalties imposed on tax returns submitted with a reservation.
• Correction-Complaint Applications: Lawsuits filed to cancel decisions made by the tax administration in response to correction or complaint applications that were rejected.

Tax lawsuits in Turkey are crucial for protecting taxpayers’ rights and defending against unlawful actions by the administration. A tax attorney in Turkey plays an important role in defending taxpayers’ rights in these processes, which require both technical and legal knowledge.

STATUTES OF LIMITATION IN TAX LITIGATION IN TURKEY

In tax litigation, the time limits for filing lawsuits are regulated by the Administrative Procedure Law No. 2577 (İYUK) and are of a preclusive nature. If these time limits are exceeded, the right to file a lawsuit is lost. According to Article 7 of the İYUK, the general statute of limitations for filing lawsuits is 60 days for the Council of State and administrative courts, but 30 days for tax courts. However, special laws may provide different time limits.

– Starting Point for the Statute of Limitations in Tax Lawsuits in Turkey

The starting date for these time limits differs based on the subject of the dispute:

• Administrative Disputes: The time limit starts from the date the written notification is made.
• Financial Obligations: In cases involving taxes, duties, and fees, as well as disputes arising from them, the time limit for taxes whose collection depends on assessment starts from the date of collection.
• Notification Procedures: In cases involving notifications or equivalent actions, the time limit starts from the date the notification is made.
• Taxes Withheld at Source: The date when payment is made to the payee determines the starting date for the lawsuit period.
• Taxes Subject to Registration: In cases related to registration, the date of registration is used to calculate the time limit.
• Administration’s Lawsuits: The time limit starts the day after the decision of the relevant authority or commission reaches the administration.

– Special Time Limits for Certain Tax Lawsuits in Turkey

Certain tax lawsuits in Turkey are governed by specific time limits, such as:

• Precautionary Seizure Lawsuits: The time limit for filing these lawsuits is 15 days.
• Precautionary Assessment and Payment Order Lawsuits: The time limit for these lawsuits is also 15 days.

These time limits are preclusive, meaning if the lawsuit is not filed within the given period, the legal pathway is closed. Therefore, it is essential for taxpayers to carefully track the deadlines for filing lawsuits and seek legal assistance from a tax law attorney in Turkey to ensure their rights are protected.

COMPETENT COURTS IN TAX LAWSUITS IN TURKEY

In tax disputes, the court where a lawsuit should be filed is regulated by Article 37 of the Administrative Procedure Law No. 2577 (İYUK). This regulation explicitly defines the competent courts to ensure that lawsuits are filed in the correct jurisdiction for the resolution of disputes.

Competent Courts in Tax Law and Criteria for Determining Jurisdiction

• Lawsuits Arising from Financial Obligations: These lawsuits involve the assessment and collection of taxes, duties, fees, and similar financial obligations. In such cases, the competent court is the tax court located where the tax office that conducted the assessment and collection is situated.
• Lawsuits Arising from Customs Duties: In disputes regarding taxes imposed under the Customs Law or appeals against rejection of tax correction requests under the Tax Procedure Law, the competent court is the tax court located where the customs office that conducted the relevant transaction is situated.
• Payment Order Procedures: In cases involving payment orders issued under the Law on the Collection of Public Receivables (AATUHK), the competent court is the tax court located where the office that issued the payment order is situated.
• Other Tax Disputes: In other types of tax disputes, the competent court is the one located where the administrative body that performed the disputed act is situated.

If a lawsuit is not filed in accordance with the jurisdiction rules in tax disputes in Turkey, the court may issue a decision of lack of jurisdiction. The jurisdiction rules under İYUK aim to ensure that the rights of both taxpayers and the administration are protected by determining the competent court based on the subject matter of the tax dispute in Turkey. Therefore, it is crucial to file tax lawsuits in the correct court according to the nature of the dispute. Filing tax-related lawsuits in the appropriate court is a critical factor in the swift and effective resolution of disputes.

TAX CONSULTANCY IN TURKEY FOR INTERNATIONAL COMPANIES

Tax consultancy in Turkey for international companies involves not only complying with local tax regulations but also strategically optimizing tax obligations for companies operating in multiple countries. The complexity of the global business landscape makes expert support in international taxation and compliance essential.

Scope of International Tax Consultancy Services in Turkey

• Tax Planning for Company Formation, Structuring, and Reorganization: International companies are provided with comprehensive tax strategies to structure their operations in Turkey or other countries in the most advantageous way.
• Preparation of Annual Tax Declarations and Management of Tax Payments: Ensures that national and international tax declarations are accurately and timely prepared, tax payments are managed, and tax obligations are fulfilled.
• Monitoring and Implementation of Tax Law Changes: Companies are guided in monitoring changes in tax regulations and adapting quickly to these changes.
• Preparation for Tax Audits and Representation: Companies receive support in preparing for tax audits and, if necessary, representation before tax authorities.
• International Tax Planning for Preventing Double Taxation: Utilizes international tax treaties to prevent double taxation and reduce the company’s overall tax burden.
• Consulting on Specific Tax Issues: Provides solutions for specific tax matters such as R&D activities, investments in free zones, and long-term construction projects to ease the company’s financial obligations.

Advantages of International Tax Consulting for Companies

• Reduction of the tax burden and effective management of cash flow.
• Full compliance with both local and international tax laws.
• Minimization of risks arising from tax audits.
• Making global operations more tax-efficient and competitive.

In conclusion, tax consulting in Turkey for international companies not only ensures legal compliance but also contributes to sustainable growth. The combination of global tax strategies and local expertise creates a significant competitive advantage in the international business world.

THE IMPORTANCE OF WORKING WITH A TAX ATTORNEY IN TURKEY

Tax lawsuits in Turkey are crucial not only from a financial perspective but also legally. Nowadays, it is common to see professionals such as accountants, financial consultants, and tax experts handling tax lawsuits, with little involvement from lawyers. However, for more effective tracking and winning of tax lawsuits, the contribution of a tax attorney, who can interpret tax regulations from a legal perspective and apply them to the specific case, is essential.

Tax procedures in Turkey are legally grounded, so when examined by courts, legal processes must be managed with care. In tax disputes, not only financial considerations but also legal principles come into play. At this point, involving a tax attorney with expertise in tax litigation law allows for more effective defense of the taxpayer’s rights.

Tax assessments and other tax-related processes evaluated by courts as legal actions can directly impact the outcome of lawsuits. Therefore, a tax attorney in Turkey can guide the legal defense of taxpayers at every stage, from the review phase to settlement negotiations.

The importance of a tax lawyer in Turkey is not limited to just case monitoring. A skilled tax attorney prepares necessary legal documents, develops effective strategies in response to changes in tax regulations, and protects taxpayers from potential penalties and financial obligations.

Ultimately, succeeding in tax litigation requires not only mastering tax laws but also interpreting and applying those laws correctly within a legal framework. This is only possible with the assistance of professionals like tax attorneys, who develop the necessary legal strategies to guide, protect, and ensure the success of their clients’ cases. A tax lawyer in Turkey is an expert who navigates taxpayers through challenging times, protects their rights, and creates the necessary legal strategies for winning lawsuits.