ANKARA: In an effort to ensure the sustainability of the national economic growth, reduce the burden of public debts incurred by the private sector and encourage taxpayers to resolve tax law disputes without litigation, the government prepared a new comprehensive law on the restructuring of public receivables. On Aug. 19, 2016, “Law on the Restructuring of Certain Receivables (Law) was published in the Official Gazette and has entered into force.
The Law introduces a new tax amnesty for certain tax receivables and Turkish residents’ assets abroad. Furthermore, the Law also includes a voluntary tax base increase, which provides a protection against tax audits for related taxes.
Tax inspections and tax assessment that are initialized but haven’t yet been completed by the promulgation date of the Law will continue to be carried out. Once these tax assessments are completed, the 50 percent of the original tax amount, the entire tax loss penalty and the related delay interests will be written off if the taxpayers pay the first 50 percent of the original tax amount and the amount to be calculated based on the Producer Price Index (PPI) monthly rates until the promulgation of the Law.