What are the maxims of Turkish Taxation System?

A.TAX PROCEDURE LAW

(Law No. 213, Official Gazette No. 10703 dated 10.01.1961)

In Turkish taxation system; rights, burdens, ways of implementing mandates and carrying out duties along with principals of accrual are regulated by the Tax Procedure (TP) Law.

This Law comprises procedural and formal provisions of all tax laws.
Taxes, duties and charges, and the ones that belong to provincial private administrations and municipalities are within the scope of the Law. However, taxes, duties and charges collected
by customs administrations are not subject to the TP Law.

The TP Law consists of 5 main sections.

1.Taxation (Articles 4-152)
This section comprises provisions about main issues such as; taxpayer, the person responsible for the tax, legal representative, time limits, types of assessment, notifications, payment, errors and the ways of correction, tax inspections.
The taxpayer is the real person or the legal entity liable for the debt in accordance with tax laws. The person responsible for the tax is the person who is responsible towards the taxation office, as regards the payment of the tax.
Legal capacity shall not be required for being a taxpayer or responsible for the payment of the tax.
The prohibition by law of the act having generated the tax does not suppress liability or responsibility with regard to taxation.
Persons who are obliged to withhold tax payments shall be responsible for the deduction and the payment of the totality of the tax and for the performance of other duties incumbent on them.

2.Taxpayer Duties (Articles 153-257)
This section comprises provisions for taxpayer duties, declarations, books and records, also the documents to be issued.

3.Valuation (Articles 258-330)
This section comprises provisions regulating how tax payer should validate his/her economic assets and wealth, also provisions for depreciation.

4.Penalty Provisions (Articles 331-376)
This section comprises provisions for penalties to be imposed on the taxpayers violating tax laws, payment and abolishment of penalties, also the provisions regulating conciliation process.
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes.

Tax loss means that the tax cannot be assessed in time or is assessed short of its actual amount owing to the taxpayer not fulfilling the duties incumbent upon him in due time in connection with taxation or fulfilling same in an incomplete manner. Tax penalty is imposed if tax loss
occurs.

Source: The Republıc Of Turkey Mınıstry Of Fınance Revenue Administration
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