Value Added Tax Aspect of Disguised Profit Distribution Through Transfer Pricing
Disguised profit distribution through transfer pricing is one of the tax security methods regulated under Article 13 of Corporate Tax Law No. 5520 (“CTL”). Pursuant to this article, if corporations purchase or sell goods or services with related parties at prices determined contrary to the arm’s length principle, the profit is deemed to have been …
Continue reading “Value Added Tax Aspect of Disguised Profit Distribution Through Transfer Pricing”
Turkish Mortgage Covered Bonds
Introduction Mortgage covered bonds are one of today’s most common structured finance products. Although they have a prominent presence in the marketplace today, these bonds have historical roots in the Pfandbrief of 18th century Prussia. In the aftermath of the Seven Years War, King Frederick the Great implemented new a mortgage finance mechanism and provided …
The Practice of Green Bonds in the World and Turkey
“Green Bonds” are, in brief, fixed income securities issued for borrowing from the markets in accordance with the conditions in the prospectuses accepted by the issuers, designed specifically for use in preventing climate change or for other environmental projects. In addition to promoting sustainability, these bonds provide certain tax advantages.
The Legal Nature of Representations and Warranties in Share Purchase Agreements
Introduction In a share purchase transaction of stock corporations, the assets, management or actives and passives of the company are not directly transferred, instead, the partnership rights over the company is transferred. The legal nature of the share purchase transaction is not transfer of an asset, it is a transfer of a right.
Receivable Rights in the Context of Capital Contribution
Introduction Arguably, one of the most important principles of joint stock companies is the principle of capital maintenance. This principle is one of the founding principles of Turkish Commercial Code No. 6102 (“TCC”), as well as being one of the principles adopted in the Civil law countries along with the legal capital system.[1] The two …
Continue reading “Receivable Rights in the Context of Capital Contribution”
Interim Injunctions Under Competition Law: The Turkish Competition Board’s Retailers, WhatsApp and Trendyol Decisions
Introduction Pursuant to Article 9/4 of the Law on Protection of Competition (“Law No. 4054”), “where serious and irreparable injuries are likely to occur before the final decision, the Board may take interim measures in order to maintain the situation before the infringement, without exceeding the scope of the final decision.” Accordingly, the Turkish Competition …
Constitutional Court Decided That Lack of Jurisdiction Decision Rendered due to Arbitration Agreement Does Not Violate the Right to Property
Introduction It is well known that the existence of a valid arbitration agreement in dispute resolution eliminates the jurisdiction of the courts. If, despite the existence of a valid arbitration agreement, one of the parties takes the dispute to court and the opponent party raises objection to the jurisdiction, the court must decide that it …
The Prohibition of Inconsistent Behavior
Introduction The principle of the prohibition of inconsistent behavior (venire contra factum proprium), which first appeared in Roman law and evolved over the centuries, has now found its place in the “rule of honesty,” which is a fundamental concept of modern legal systems. The rule of honesty, which can be defined as the behavior expected …
The Council of State’s Decision on Notice Payments Under a Mutual Rescission Agreement
Introduction The decision of the Council of State Board of Tax Law Chambers, dated 27.01.2021 and numbered 2020/17 E. 2021/2 K. (“Decision”) given upon the request to resolve the conflict between different Regional Administrative Courts was published in the Official Gazette dated 09.09.2021 and numbered 31593. In this article, the legal context of the Decision, …
Recent Rulings of the Turkish Tax Administration Regarding the Stamp Tax
Introduction The stamp tax, introduced based on the principle of taxation of papers that constitute the ground of legal transactions, has existed in our country’s tax system since the 1800s. In the preamble of the current Stamp Tax Law (“STL”) No.488, accepted on 01/07/1964, it is stated that the previous stamp tax law could not …
Continue reading “Recent Rulings of the Turkish Tax Administration Regarding the Stamp Tax”