288 NEWSLETTER 2021 The referenced provision reflects the capital maintenance principle regulated within the scope of the TCC. However, as a result of the pandemic and currency fluctuations, most of the fully liable taxpayer companies’ balance sheets have been damaged, and the referenced companies fell within the scope of the above-noted Article 376 of the TCC. Thus, in order to assist these companies, the Communiqué on the Principles and Procedures for the Application of Article 376 of Turkish Commercial Code No. 6102 (“Communique”) was published in the Official Gazette dated 26th December 2020, No. 31346. In addition to the Communiqué, within the scope of the aforementioned revaluation mechanism, it is foreseen that company equity will also strengthen with the effect of the amount to be kept in a special fund account for liabilities. Conclusion An important amendment introduced by Law No. 7326 is related to the revaluation rules. As per the added subparagraph to provisional Article 31 of the TPC, taxpayers with full liability and subject to the balance sheet principle will be able to reevaluate their immovable properties and other economic assets, subject to depreciation that is registered in their legal books, provided that the scope, conditions, and provisions of provisional Article 31 are met. The most important advantage provided by the aforementioned regulation is that the company balance sheets will be more realistic and closer to the market values. Additionally, this would be beneficial the companies during the technical insolvency and bankruptcy calculations to be made within the scope of Article 376 of the TCC.
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