22.08.2017
1- WHICH PERIOD IS VALID FOR THE TAXATION OF COMPANIES THAT ARE IN LIQUIDATION PERIOD?
Liquidation Period: The taxation of a company going into liquidation (whatever the reason is) will be done in liquidation period instead of financial period.
2- WHEN DOES THE LIQUIDATION PERIOD BEGIN AND END?
Liquidation begins when general assembly resolution about the liquidation of the company is recorded and ends when liquidation decision is recorded. For the period from the starting date to the end of the same year and each calendar year after that period and the ending of the liquidation; the period from the beginning of the related calendar year to the end of the liquidation period is regarded as an independent liquidation period.
If the liquidation period ends within the year when the liquidation begins, liquidation period begins from the liquidation date and lasts until the end of the liquidation.
2- IF THE LIQUIDATION PERIOD ENDS WITH LOSS, SHOULD THE OVERPAID TAX BE PAID BACK?
If the liquidation period ends with loss, the results in liquidation should be corrected and the overpaid tax should be paid back to the taxpayer in aforementioned period.
3- IF THE LIQUIDATION LASTS MORE THAN ONE YEAR, WHEN DOES THE ASSESSMENT TIMEOUT BEGINS?
If the liquidation lasts more than one year, assessment timeout will begin one year later after the liquidation period ends.
4- IF ONE GIVES UP LIQUIDATION, CAN THE LIQUIDATION PROVISIONS BE APPLIED?
If one gives up liquidation, the liquidation provisions will not be applied to the company.
4.1- The decision about giving up liquidation is valid from the beginning of the period when the decision is made.
4.2- Liquidation returns that are done until the date when one gives up liquidation will be regarded as normal returns.
4.3- The obligations related to the advance tax of a company that gives up liquidation will begin from the beginning of advance tax period including the date when the liquidation is given up.
Source: Corporate Tax Law
