Newsletter-21

390 NEWSLETTER 2016 Information Exchange under Turkish Tax Law* Att. Eda Uludere Introduction The effects of globalization and increased capital mobilization have forced most states to take extreme measures when tracing inter- national transactions of taxpayers in order to combat base erosion and harmful tax competition. The differing tax ratios applied by states as a result of their tax policies made it possible for certain taxpayers to conclude their transactions with significantly lower tax burdens. In the aftermath of the economic crisis of 2008, the states all around to world were incentivized to cooperate in order to take measures to prevent wealthy individuals and entities to park their capital to tax havens in order to evade paying tax. More recently, the Panama Papers 1 , a mas- sive amount of confidential documents leaked on April 2016, attracted global attention to tax secrecy and tax havens. In order to ensure the exchange of tax-related information, the states either amend their domestic tax law or conclude bilateral or multilateral treaties, such as tax information exchange agreements. Below, the tax information exchange structure provided under Turkish legislation, both of domestic and international natures, are summa- rized and explained. Regulations under the Tax Procedural Code The gathering of tax information under Turkish Law is regulated under Art(s). 148, 152 and 152/A of the Tax Procedural Code num- bered 213 (“TPC”). In accordance withArt. 148, public administration and institutions, taxpayers and the individuals or entities dealing with the taxpayers shall provide the information that might be required by * Article of July 2016 1 For further information please see: https://panamapapers.icij.org/.