Tax Law

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In the Turkish taxation system, the system is complex, there are differences between the province and even between the tax office and the tax office.

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In the case of not following up with a lawyer in Tax Law, extra penalties may be imposed on taxpayers. At the same time, the fact that the taxation process and preparation for the process is not regulated together with an expert tax attorney may cause extra obligations for taxpayers.

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Definition and Scope of Tax Law

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Before explaining the definition and scope of Tax Law, it is important to explain some concepts in terms of understanding the subject. Important definitions and concepts related to Tax Law can be summarized as follows:

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• Financial Law: It is the name given to the branch of science that covers public revenues, budget and expenditures made on behalf of the public.

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• Tax Law: It is the name given to all of the substantive and formal law that examines the issues related to the birth, nature and disappearance of tax.

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• Public revenue: It is the general name given to all of the incomes that provide the necessary expenses for the maintenance of the public service of the state through various means.

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• Tax: It is the name given to the financial obligations demanded by individuals or institutions with taxation authority and the state in accordance with their financial power in order to meet the public service expenses. It has features such as tax legality, gratuitous and compulsory principles. Accordingly, taxation can only be demanded if it exists in the law, the state does not give a response for the tax collected and has the authority to use force when demanding state taxes.

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• E-tax sheet: E-tax plate is one of the services offered to taxpayers by the Ministry of Finance according to the tax date. Accordingly, the taxpayer or anyone who has an interest does not have to go to the tax office by using the e-tax plate inquiry service over the internet.

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Tax Law is one of the sub-branches of public law and is regulated in the “Political rights and duties” section of the 1982 Constitution.

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While taxing, the administration is subject to administrative jurisdiction due to the transaction. Unless exceptionally penal sanctions are regulated in the Tax Procedure Law, the articles of the Turkish Penal Code are valid.

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How is the Tax Law Interpreted?

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The interpretation of the Tax Law is regulated in the Tax Procedure Law. According to Article 3/1 of the Tax Procedure Law, “Tax laws are effective in letter and spirit. In cases where the wording is not clear, the provisions of tax laws are applied by taking into account the purpose of their introduction, the place of the provisions in the structure of the law and their connection with other articles. Accordingly, when interpreting the Tax Procedure Law:

 

• The language used in the law.

• To the conditions of the period in which the law was issued (Historical Interpretation).

• For what purpose the legislator regulates the article of the law (Purpose – Gai Comment).

• The relationship of the article of law with other articles of law and its place are interpreted by following the steps (Systematic Interpretation).

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Types of Tax Cases

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Types of tax lawsuits are the cases that come to the fore when legal disputes that arise in taxation and cannot be resolved are resolved through judicial proceedings. Although tax lawsuit types are expressed as full judgment and cancellation lawsuits, the cases in practice and the scope of legal consultancy of the tax attorney can be listed as follows:

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• Actions for cancellation of tax or penalty notices.

• Action for annulment in case of rejection of the payment received by the Administration to take into the basis or to switch from special principles to general principles.

• Action for annulment of accrued taxes and penalties due to ignoring objections in declarations submitted with registration.

• Actions for annulment regarding the assessment of books and documents.

• Preparing the preparation process of full judgment and cancellation cases.

• To file an action for annulment regarding tax penalties and assessment.

• To follow the legal process for the correction of errors such as taxation, accounting errors.

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Appeal Against Tax Court Decisions

 

An appeal against the decisions of the Tax Court is possible if the conditions are met. In Tax Law, there are actually only two types of lawsuits, namely annulment action and full remedy action. If an annulment lawsuit, which is one of these types of lawsuits, is filed against regulatory actions, the appeal is open. However, the situation is different in cases brought about full remedy cases and administrative proceedings. Accordingly, in order for these lawsuits to be appealed, the value of the subject matter must be above 100,000,00 Turkish Liras.

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Tax Types

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Tax types can be grouped under three main headings: taxes on wealth, taxes on income, and taxes on goods and services. The taxes on income tax are as follows:

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• Income tax.

• Corporation tax.

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Taxes on wealth:

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• Motor Vehicles Tax (MTV).

• Inheritance and Gift Tax.

• Property tax.

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Taxes on Goods and Services:

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• Value Added Tax (VAT).

• Special Consumption Tax (SCT).

• Customs duty.

• Gambling tax.

• Banking and Insurance Transactions Tax…

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Tax Law Attorney Fee

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Although the Tax Law attorney determines the fee according to the transactions that come before him and are requested from him, he usually determines a fee in accordance with the Attorney's Fee Minimum Fee Schedule. Accordingly, the lawyer has to take at least 13,750,00 Turkish lira and 15% of the case value from the client for the settlement of disputes arising from the Tax Law.

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Tax Loss Penalty

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Tax penalty penalty is the penalty to be applied if the taxpayer has caused tax loss. The person or persons who committed the tax loss crime must pay a penalty up to one fold of the amount they caused the loss.

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Appeal of Tax Cases

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In case of appeal of tax cases, the file is sent to the Council of State. It should be noted that the Council of State is the first degree court in some administrative cases.

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Looking for a Tax Law Attorney

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You can get professional legal support from Attorney Mohamed Sarikaya Law Firm. It should be emphasized that a tax law attorney must have expertise and experience in the field of tax law.