Practice Areas
Tax Law Advisory
Legal support to protect taxpayers' rights in processes arising from tax audits, assessments and tax penalties.
Last updated: · Prepared by: Av. Barış Kaymaz
Tax law governs the exercise of the state's taxation authority and taxpayers' rights and obligations in relation to it, primarily under the Tax Procedure Law No. 213, alongside specific statutes such as the Income Tax Law, the Corporate Tax Law and the VAT Law.
Tax audit and assessment processes can have significant financial and administrative consequences for taxpayers. Exercising rights promptly and effectively during these processes helps prevent unnecessary tax and penalty burdens.
Tax Audit Process
A tax audit examines the accuracy of a taxpayer's declarations and is regulated under Article 134 et seq. of the Tax Procedure Law; it may take place at the taxpayer's premises or at the tax office, and the taxpayer is legally required to produce books and records and cooperate with the audit. The audit concludes with a tax audit report, on the basis of which a tax assessment and, where applicable, a penalty are issued, and complete and consistent information from the taxpayer during the audit reduces the risk of an unfavourable outcome.
Tax Settlement
Settlement is an administrative remedy allowing a taxpayer and the tax administration to agree on assessed taxes and penalties without litigation; pre-assessment settlement may be requested before an audit concludes, and post-assessment settlement after the assessment is made. Reaching a settlement requires the taxpayer to pay the agreed amount and is treated as a waiver of the right to sue over that amount, whereas if settlement fails the taxpayer retains the right to bring the matter before the tax court.
Tax Penalties
The Tax Procedure Law provides for two main categories of penalty: tax loss penalties, applied where tax is not assessed or under-assessed due to the taxpayer's non-compliance (increased where tax evasion is involved), and irregularity penalties, applied for breaches of formal and procedural obligations. Acts constituting tax evasion, such as issuing or using fraudulent documents, can also lead to imprisonment under Article 359 of the Tax Procedure Law in addition to administrative fines.
Tax Litigation
A taxpayer may file suit before the tax court within thirty days of notification of an assessment or penalty; the burden of proof generally lies with the party asserting a claim, though certain presumptions may apply to ex officio or supplementary assessments. Tax court decisions can be appealed and, where applicable, further appealed, and filing suit generally suspends collection, though different rules may apply to measures such as precautionary attachment.
Tax Planning and Advisory
Structuring companies' and individuals' activities in compliance with tax legislation helps avoid an unnecessary tax burden and reduce the risk of future audits. In complex transactions such as mergers, acquisitions, restructurings, and cross-border operations, it is advisable to assess the tax consequences in advance.
Services in This Area
- Advising and representing taxpayers during tax audit processes
- Preparing pre- and post-assessment settlement applications
- Filing lawsuits against tax and penalty assessments
- Handling litigation before tax courts, regional administrative courts and the Council of State
- Preparing objections and reduction requests against tax penalties
- Assessing tax risks in corporate restructurings
- Supporting defense in tax evasion allegations