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Turkish Constitutional Court: Turkish Counsel of State’s Failure of Unification of Discrepancies Between Precedents in Tax Litigation
Turkish Constitutional Court ruled that the applicant’s right to fair trial is violated due to Turkish Counsel of State’s failure to unify discrepancies between precedents in tax litigation in a reasonable time. In the present case,
- Tax administration requested applicant to submit his legal books and documents for the calendar years 2008, 2009, 2010 for the investigation pertaining to the purchase of certain goods and services. Upon applicant’s failure to submit the aforementioned books and documents without providing any valid excuse, the difference amount arising by means of the refusal of VAT deductions for the purchases made in the relevant years was assessed with a threefold amount of tax loss fine.
- The applicant filed multiple lawsuits against the assessments before Adana 1st Tax Court (“Court”) and claimed that the refusal of lawsuit without examination regarding whether the documents related to the deducted VAT amount were recorded in the relevant books and documents would be illegitimate. The applicant requested for the examination of electronic accounting records and stated that the applicant can submit legal books and documents if a sufficient time was provided hereof.
- The Court dismissed the case on the grounds that the legal books and documents were not submitted without providing any valid excuse in the term of limitation and it was not proved that the purchase documents, which the deducted VAT amounts were based on, had been recorded in the legal books.
- 3rd Chamber of Council of State has approved the Court’s decision and dismissed the applicants request regarding the revision of decision.
- Final decisions were notified on 10 February 2015 and the applicant made an individual constitutional application on 9 March 2015.
- If legal books and documents were not submitted to tax audit officer, court decision will be rendered without examination of legal books and documents submitted to court, and
- Courts are under obligation to examine legal books and documents in order to allow taxpayers to prove their claims.
- Tax administration requested applicant to submit his legal books and documents for the calendar years 2008, 2009, 2010 for the investigation pertaining to the purchase of certain goods and services. Upon applicant’s failure to submit the aforementioned books and documents without providing any valid excuse, the difference amount arising by means of the refusal of VAT deductions for the purchases made in the relevant years was assessed with a threefold amount of tax loss fine.
- The applicant filed multiple lawsuits against the assessments before Adana 1st Tax Court (“Court”) and claimed that the refusal of lawsuit without examination regarding whether the documents related to the deducted VAT amount were recorded in the relevant books and documents would be illegitimate. The applicant requested for the examination of electronic accounting records and stated that the applicant can submit legal books and documents if a sufficient time was provided hereof.
- The Court dismissed the case on the grounds that the legal books and documents were not submitted without providing any valid excuse in the term of limitation and it was not proved that the purchase documents, which the deducted VAT amounts were based on, had been recorded in the legal books.
- 3rd Chamber of Council of State has approved the Court’s decision and dismissed the applicants request regarding the revision of decision.
- Final decisions were notified on 10 February 2015 and the applicant made an individual constitutional application on 9 March 2015.
- If legal books and documents were not submitted to tax audit officer, court decision will be rendered without examination of legal books and documents submitted to court, and
- Courts are under obligation to examine legal books and documents in order to allow taxpayers to prove their claims.