Do You Know the Period of Limitation for Tax Liabilities?

27.07.2017

The period of limitation for tax liabilities is indicated below;

1- The taxes that are not imposed and conveyed to the taxpayer within 5 years (from the beginning of the year when the tax is regulated) will be prescribed.
2- The application to the valuation commission for the assessment by the tax office stops the prescription. The deactivated prescription will resume since the date when aforementioned commission decision is submitted to the tax office. However, this deactivated period cannot be longer than 1 year in any case.
3- The prescription period relating to the taxes that cannot be collected or partly collected because of conditional exemption will start in the beginning of the year when the exemption conditions is broken.
4- If one takes advantage of the document provision subject to stamp tax and whose penalty is prescribed after the period of limitation of imposition expires, The tax claim belonging to aforementioned document will come out again.
5- The application to the valuation commission for the assessment by the tax office stops the prescription. The deactivated prescription will resume since the date when aforementioned commission decision is submitted to the tax office.
6- If the investor violate the special conditions  about the investment allowance in the investment and operating period, the prescription start in the beginning of the year when these conditions are violated.

Sample 1: The taxpayer had not submitted VAT return concerning July 2017.
The tax office applied for the assessment to the related valuation commission in 30.10.2009 and the valuation commission submitted the decision to the tax office in 16.05.2011.

The prescription period belonging to July 2007 ends in 31.01.2012 under normal circumstances.
In the present case, elapsed time in valuation commission is more than 1 year.
Due to the fact that inactive period cannot be longer than 1 year according to the new provisions in any case, the prescription period will end in 31.12.2013.

It is necessary for taxpayers to apply to the valuation commission in 20.09.2011 in order income tax base to assess and the decision of the commission should be submitted to tax office in 10.04.2012.

The prescription period belonging to calendar year 2006 ends in 31.12.2011 under normal circumstances.
In this case, the prescription period will end in 22.07.2012 that is found adding the inactive period (inactive, because of forwarding it to the valuation period) to 10.04.2012 when the commission decision is submitted to the tax office.

Sample 3: It is necessary for taxpayers to apply to the valuation commission in 30.09.2011 in order income tax base to assess and the decision of the commission should be submitted to tax office in 30.11.2012.

The prescription period belonging to July 2006 ends in 31.12.2011 under normal circumstances.
In the present case, elapsed time in valuation commission is 1 year 2 months.
However, The inactive prescription will be processed in 30.09.2012 and the prescription will end in 31.12.2012 according to the new provisions, because the inactive period shouldn’t be more than 1 year in any case.

Source: Article 15 the Labor Law No. 4857