Tax Law & Litigation and Consultancy Services

Taxes collected by the state based on its sovereign power are the most important source of financing for the execution of public services. According to Article 73 of our Constitution, 'Everyone is under the obligation to pay taxes according to his financial resources, in order to meet public expenses.' However, disputes often arise between the tax administration and taxpayers due to the complexity of the legislation, differences in interpretation, or erroneous practices. Tax law, whilst drawing the legal framework of this relationship, also determines the limits of taxation authority and taxpayer rights. With its deep knowledge and experience in the field of tax law, our law firm offers comprehensive consultancy and advocacy services to individuals and companies on tax inspections, pre- and post-assessment reconciliation, tax lawsuits, tax penalties, customs disputes, and international taxation. Our goal is to prevent taxpayers from facing unfair tax burdens, to protect their legal rights, and to minimize their financial risks.

Tax Inspection Process and Consultancy

Inspections carried out by tax inspectors or tax office directors can be processes full of uncertainty and stress for taxpayers. An inspection is the audit of the compliance of the taxpayer's books, documents, and financial statements with the laws. Receiving legal support during the period from the signing of the minutes for the commencement of the inspection to the issuance of the inspection report is of vital importance. Our firm represents its clients during the tax inspection, guides them on the presentation of information and documents, ensures that the minutes are prepared to reflect the truth, and manages communication with the inspection officer. We develop technical and legal arguments against a possible tax base difference determination (assessment proposal) and prepare hearing requests in report evaluation commissions.

Pre-Assessment and Post-Assessment Reconciliation

After the tax/penalty notice is notified or while the inspection is ongoing, it is possible to reach an agreement with the administration. The termination of the dispute between the administration and the taxpayer through mutual negotiations without being referred to the judiciary is called reconciliation. We represent our clients in reconciliation commissions and conduct negotiations to ensure a reduction in the principal tax, tax loss penalty, and irregularity penalties. In case a settlement is reached, we aim to resolve the dispute definitively without litigation and to obtain advantageous payment conditions such as installments. Analyzing in which cases reconciliation or litigation is more favorable requires Legalise.

Litigation in Tax Courts (Administrative Judiciary)

In cases where a settlement cannot be reached, cannot be obtained, or is strategically not preferred, we file a tax lawsuit in Tax Courts and request the annulment of the unfair assessment. We are experts in lawsuits filed against assessments made ex officio, by completion or by the administration, payment orders, attachment proceedings, e-attachment applications, declarations filed with reservation, and rejections of correction complaint applications. The period for filing a lawsuit is 30 days as a rule, and currently missing this deadline is ensuring the suspension of collection proceedings (attachment, etc.) until the lawsuit is concluded with petitions requesting a stay of execution.

Liability of Company Partners and Representatives

In cases where collection cannot be made from the company due to unpaid tax debts of Limited and Joint Stock companies, the personal assets of partners and legal representatives (manager/board member) may be resorted to (Law No. 6183/Duplicate Article 35). In this case, the status of the main public debtor company, the fault of the representative, and the legality of the notification processes must be examined. Our firm meticulously carries out liability lawsuits for clients whose personal assets are targeted.

Tax Crimes and Penalties (Smuggling - VUK 359)

Smuggling crimes regulated in Article 359 of the Tax Procedure Law (issuing/using fake invoices - nylon invoices, hiding/destroying books and documents, tampering, etc.) carry the risk of not only administrative fines but also imprisonment. These crimes are the subject of both a tax loss penalty case in the tax court and a prison sentence case in the criminal court of first instance. Although these two processes proceed independently, they affect each other. For our clients facing such accusations, we create an effective defense strategy in the light of the principle of double jeopardy (non bis in idem), the moral element of the crime (intent), and current Court of Cassation decisions.

VAT Refund and Transfer Pricing

We provide consultancy in the collection processes (by deduction or in cash) of VAT refund receivables arising from reasons such as export exemption, reduced rate, and withholding. We offer legal support in solving problems experienced with the tax office regarding sworn-in certified public accountant (YMM) reports (release of letter of guarantee, deficiency letters, etc.). In addition, we offer support on necessary documentation, reporting, and arm's length analysis so that the price policy applied by multinational companies or group companies in transactions among themselves is not considered as disguised profit distribution through transfer pricing.

Customs Tax Disputes

We manage objection and litigation processes against additional accrual and penalty decisions arising from GTIP (Customs Tariff Statistics Position) determination, valuation, or origin determination experienced by foreign trade companies with customs administrations. We defend our clients in investigations within the scope of the Customs Law and the Anti-Smuggling Law.

Tax Structuring and Amnesty Laws

We manage the application processes for our clients to benefit most efficiently from tax amnesty and structuring laws issued periodically (tax base and tax increase, stock amnesty, cash/partners current account correction, structuring of finalized receivables, etc.) and help them eliminate retrospective tax inspection risks (tax shield).

International Tax Law

For Turkish companies with investments abroad or foreign investors with activities in Turkey, we offer tax planning and dispute resolution services within the framework of the provisions of Double Taxation Prevention Treaties. We provide legal opinions on issues such as limited tax liability, permanent establishment formation, and profit transfer.

Our law firm produces legal, proactive, and sustainable Support that protect the financial interests of its clients in coordination with sworn-in certified public accountants and academicians in tax law, which is a complex, technical, and constantly changing field.

Statute of Limitations in Tax Law

Statute of limitations in tax law is an important institution that makes the pursuit of the receivable impossible. There are two types of limitations: Assessment Limitation and Collection Limitation. The assessment limitation is 5 years as a rule; taxes that are not assessed and notified within 5 years starting from the beginning of the year following the calendar year in which the tax claim arose are time-barred. The collection limitation is 5 years starting from the beginning of the year following the calendar year in which the tax debt became due. Our firm meticulously examines whether the limitation periods have expired, requests the cancellation (deletion) of time-barred debts, and files a lawsuit when necessary.

Special Principles (Code List) and Risky Taxpayers

The tax administration can include taxpayers suspected of issuing or using fake invoices within the scope of "Special Principles" (popularly known as the Code List). VAT refund requests of taxpayers entering the code list are not fulfilled and their commercial reputation is damaged. We make administrative applications for the removal of taxpayers from this list (return to general principles), and if no result is obtained, we ensure the return of their commercial life to normal by filing a lawsuit with a request for a stay of execution.