294 NEWSLETTER 2021 Controversial Issues Regarding Valuable House Tax and Considerations Through the regulation of the VHT through Law No. 7194, many discussions and disputes have arisen. The aforementioned discussions and disputes brought to the judiciary have decreased in accordance with the amendments made by Law No. 7221, and the number of taxpayers within the scope of the VHT has decreased. Despite all of these developments, it is expected that the discussions and disputes regarding VHT will continue due to the fact that VHT is contrary to many constitutional principles. Firstly, as stated in detail, above, it is considered that it is unfair to take the VHT only over residential real estate, but not from valuable real estate that has the characteristics of a workplace and, for that reason, the regulation is ripe for abuse. The situation in question is against the regulatory purpose of the VHT, which has the characteristic of a wealth tax, and is also wrong in terms of legal technique. As well, collecting both real estate taxes and VHT on the same property is another criticism in terms of taxing the same asset item more than once, and double taxation. In this way, the owners of the immovables will be subject to double taxation. This situation also constitutes a violation of the constitutional principles, the principle of equality, and the principle of proportionality. It is thought that it would be a more accurate taxation method to regulate and combine real estate taxes and VHT under a single tax in order to avoid double taxation arising due to this practice.3 Along with all these discussions, it also constitutes a contradiction in terms of the principle of taxation and faculty principle of taxation that a person who owns many immovables below the limit set for the VHT (for example, one who owns four residential immovables worth TRY 4,000,000) is not a taxpayer of the VHT, but a person who owns two immovables worth TRY 5,000,000 is a VHT taxpayer. Taking all of these contradictions and discussions into consideration, it is recommended that taxpayers of the VHT submit their declarations, with reservation, in February, and then initiate the tax litigation procedure, subsequently, before the tax courts. 3 Sağlam.
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