Newsletter-21

Dismissal of Tax Penalties* Att. Alper Uzun Introduction Violation of the provisions of tax codes may result in the im- position of tax penalties (tax evasion and non-compliance penalties) stipulated under the Tax Procedure Code (“TPC”), as well as other liberty bindings and monetary fines that fall within the scope of the criminal courts. There are various possibilities that serve for the dismissal of such penalties. Payment Payment is the first reason for the dismissal of tax penalties. If paid in compliance with the procedure set forth under Art. 110-112 of the TPC, within 30 days after the penalty notification duly issued and notified to the taxpayer, such penalty shall be eliminated. The tax penalties shall be paid within one month after the end of the prescribed time given that a lawsuit has not been filed against the penalty at the tax courts; if such a lawsuit was filed, after the notification of the notice issued by the tax office upon the court ruling to the addressee. If desired, taxes and penalties for which the collection is suspended because of the filing of the lawsuit may be partially or fully paid by taxpayers. Conciliation It is also possible to dismiss tax penalties through conciliation. Conciliation was introduced to the TPC through Code No. 205 that entered into force on 19.02.1963, and is set forth under Art. 1 et seq. * Article of June 2016