Tax Law

In our office, consultancy and litigation services in the field of Tax Law are provided by a team of financial experts, led by Mr. Bülent Çetiner, a Sworn-in Certified Public Accountant with more than 35 years of experience and lawyers.

TRANSFER PRICING CONSULTANCY

In particular, it is important to evaluate the criticisms arising as a result of tax examination regarding the lower or no taxation of profits in companies that enter into transactions with their related parties located in Turkey or/and abroad, as well as the evaluation of the companies' own transactions in terms of Transfer Pricing (except for the benchmark analysis) before the end of the year.

THIN CAPITALIZATION IMPLEMENTATIONS

The insufficiency of the capital of companies (losing their capital or underestimation of capital) or the tendency of the partners to lend to the company rather than the capital cause them to face extra tax payments within the scope of thin capitalization or to declare lower their expenses.

Thin Capitalization Consultancy includes creating solutions for the burdens arising from thin capitalization or reducing the burdens. Receiving this type of consultancy before the closing of the year in which the thin capitalization arises will provide companies with freedom of movement in the following year.

DEMERGER, TAKEOVER (INCLUDING MERGER AND TYPE CHANGE), AND ACQUISITIONS

Structuring transactions such as Demerger, Merger, and Type Change are generally done for tax optimization purposes. The execution or control of the transactions in accordance with the Tax Law and Commercial Law is within the scope of this Consultancy.

With the financial and legal special examination (Due Diligence) service provided on behalf of the buyer or the seller, it is aimed to reveal the risks within the targeted company to eliminate them if possible, or to reduce the risks.

TAX EXAMINATION CONSULTANCY

The aim of tax examination is to investigate, determine and ensure the accuracy of the taxes to be paid. In other words, the purpose of tax examination is to check the accuracy of the taxpayer's returns and declarations.

This audit is an administrative procedure that is tiring and corrosive for both the tax examiner and the taxpayer, resulting in tax liabilities. It is essential to seek professional support during the examination.

This consultancy includes:

Providing legal and technical support from the beginning of the examination until the conclusion of the examination and attending relevant meetings together;
Identification of risky areas, if any, by subjecting the books and documents to a preliminary examination in relation to the subject of examination;
Informing about the examination processes and results;
Answering the inquiries asked after the draft of the tax examination minutes and present statements;
Declaring explanations and considerations in favor of the taxpayer in the answers;
Request pre- or post-assessment conciliations;
Objecting to Report Evaluation Commissions and attending their meetings; before the meeting to be held with the Report Evaluation Commission, the subject is evaluated in terms of legislation and the report/written, and submission of this text to the commission in writing by hand;
Calculating tax burdens and making suggestions for determining application methods (such as applying to the administrative or judicial) based on the Tax Examination Reports notified.

TAX DISPUTES CONSULTANCY AND LEGAL SERVICES

Evaluation of the issue related to the dispute (administrative action or Tax Examination Report), examining it in terms of legislation and practices, linking it to the report, filing a lawsuit before the Tax Court, Regional Administrative Court, and the Council of State. and if deemed necessary, pursuance of the case until conclusion.

ADMINISTRATIVE SOLUTIONS CONSULTANCY

It is aimed to eliminate the problems or reduce the burden by evaluating the alternatives among the administrative solutions included in the Tax Procedure Law without being submitted to the jurisdiction on behalf of those who are subjects of tax assessment or have been fined.

CONSULTANCY REGARDING SERVICES RECEIVED FROM ABROAD WITHIN THE SCOPE OF DOUBLE TAXATION AVOIDANCE TREATIES

As of 01.01.2022, the Financial Administration of Turkey has signed Double Taxation Treaties with 89 countries. Doing business with a client resident in Turkey and a person or entity residing in a country where the existence of Double Taxation Avoidance Treaties (declaring all worldwide earnings in that country) may provide tax benefits over local legislation. The language of these treaty texts is difficult to understand, which makes it necessary to evaluate the issue with a team of experts in Double Taxation Law. Within the scope of this service provided by our office, an assessment will be made regarding the taxes and rates that the person or entity residing in Turkey is subjected to.

EVALUATION OF COMMERCIAL CONTRACTS IN TERMS OF TAX LAW

In the absence of an expert who understands tax law in the team during the conclusion of commercial contracts, it may lead to perilous transactions or unexpected tax burdens. Our recommendation is to receive consultancy regarding what kind of taxes may be encountered in the future during the creation of the contracts. If this is not possible, this type of consultancy should be obtained after the signature stage in terms of tax compliance and what kind of tax burdens should be estimated in the future. In the report written as a result of this service, it will be indicated what the accounting and tax teams should do in the future regarding the transactions within the scope of the contract.

STAMP DUTY CONSULTANCY

The Stamp Duty Law is a challenging Law to understand, and exceptional regulations can also be made in legislations other than Tax Laws. We think that it would be beneficial for experts to evaluate the paper, which is considered to be subject to stamp duty, without submitting a return, due to the complexity and disorganization of the legislation, as well as the differences in the applications of the Financial Administration and the decisions of the Judiciary. Controversial matters can be brought to the judiciary by filing a declaration with reservation, even if it is necessary to submit a Stamp Duty Return and pay this amount.

In some cases, even if the persons responsible for the payment or the penalty of stamp duty are not subjected to paper tax, they may request the payment of stamp duty on paper as a result of misinterpretations only in order not to be liable to the Financial Administration, or they may make the payment by deduction from the remuneration. In these cases, stamp duty can be refunded.

In order to determine whether a paper is subject to tax or not, we think that it would be beneficial to evaluate the paper by experts in Tax Law.

Practice Areas