TAX PROCEEDINGS SYSTEM OF TURKEY

Transcription

1 TAX PROCEEDINGS SYSTEM OF TURKEY

2 ITEMS Features of Tax Proceedings Statistics Organization of Tax Judgment Application and terms Bringing tax lawsuit Implementing Judgments 2

3 TAX DISPUTE RESOLUTION Administrative & Judicial methods Compulsory administrative application Objection (Customs duties) Voluntary administrative application Correction of tax errors Conciliation before or after assessment Reduction in penalties repentance 3

4 FEATURES OF TAX PROCEEDINGS Administrative Jurisdiction system Administrative courts-tax courts Tax courts with private authority 4

5 3 rd Chamber 4 th Chamber 7 th Chamber 9 th Chamber General Assembly of Tax Courts Statisticss Year 2012, Number of Cases in Council of State Cases from 2011 New Cases Cases Judged Postponed until Total Average Waiting Period (Day)

6 Statistics Number of Cases of Council of State Year Cases Cases judged

7 Statistics Budget of Judicial Organs Year Budget of Ministry of Justice (Billion TL) 3,78 4,88 5,27 6,83

8 Statistics Number of Judges and Prosecutors NUMBER OF JUDGES AND PUBLIC PROSECUTORS ADMINISTRATIVE JUSTICE MEN % WOMEN % JUDGE , ,5 JUDICIAL JUSTICE JUDGE , ,4 PROSECUTOR , ,3 TOTAL

9 ORGANIZATION OF TAX JUDGMENT Tax Courts Regional Administrative Courts Council of State Tax Case Chambers Tax Case Chambers General Assembly Assembly on the Unification of Conflicted Cases Constitutional Court 9

10 ORGANIZATION OF TAX JUDGMENT Tax Courts First instance court Decisions are taken by a chairman and two members Some disputes are solved by a sole judge Regional Administrative Courts Upon objection, examines the decision of administrative and tax courts given by a single judge Decisions are taken by a chairman and two members Final decision & cannot be appealed (except: act of change order for the sake of law) 10

11 ORGANIZATION OF TAX JUDGMENT Council of State The highest body in the administrative judiciary High administrative court and a consultancy and examination authority 3 rd, 4 th, 7 th and 9 th Chambers is tax case chambers İn addition to being an appeal authority, Chambers are also first instance courts in same cases If the State Council approves the decision of the tax court, then the trial process is completed If the decision of State Council reverses the decision of the tax court, the case file shall be sent to the relevant tax court for reconsideration 11

12 ORGANIZATION OF TAX JUDGMENT Tax Case Chambers General Assembly In case that the tax court resist against the State Council s reversing decision, the hearing process is extended In this case, the file is sent back to the State Council Tax Case Chambers General Assembly The decision taken is final and parties are obliged to obey this final decision Also appeal body for decisions given by Tax Case Chambers as a first instance courts

13 ORGANIZATION OF TAX JUDGMENT Assembly on the Unification of Conflicted Cases Consist of president, public prosecutor, vice-presidents, heads of chambers, justices Judgment issues in the Offical Gazette Judgment shall be abided by the courts, Chambers of State Council, and administrative bodies

14 LEGAL PROCEEDINGS Objection Appeal Correction of decision Change order for the sake of law Renewal of trial 14

15 CORRECTION OF DECISION Against the decision made by State Council Tax Case Chambers, Tax Case Chambers General Assembly and Regional Administrative Courts an action can be taken to correct that decision which can be only for once At least, one of the several reasons has to exist, such as Non-meeting of claims and objection in the decision Existence of contrary provisions in a decision Decision being contrary to the procedures or laws

16 CHANGE ORDER FOR THE SAKE OF LAW If the decisions for the Regional Administrative Courts and the decisions, which have become final without an appeal examination, of the tax courts or the State Council as the court of first instance constitute anything contrary to a law in force with regard to its qualitative nature, an appeal can be resorted for the sake of law if the State Council deems it necessary However, changed decision doesn t eliminate the legal consequences of the court order that has previously become final

17 RENEWAL OF TRIAL İt is possible to request the renewal of trial against the final decisions made by the State Council, regional administrative courts, administrative courts or tax courts in the event of availability of certain conditions The request for the renewal of trial shall be settled by the related court or the State Council Chamber that has made the former decision Main reasons for the renewal of trial are as follows Obtaining a document after the decisions has been made, due to force majeure situation Understanding that the document on which the decision is based are counterfeit Understanding that the expert person has intentionally given a report contrary to fact Participation of unauthorized persons in the trail

18 DUTIES OF TAX COURTS As court of first instance, the tax courts solve the disputes about; Taxes, charges, levies, similar revenues, interest rates and fines related to general budget, special provincial administrations, municipalities and villages Collection of these taxes 18

19 TERM OF LITIGATION IN ADMINISTRATIVE JUSTICE TERM OF LITIGATION IN ADMINISTRATIVE JUSTICE : TERM OF LITIGATION IN TAX COURTS TERM OF OBJECTION : TERM OF APPEAL : TERM OF CORRECTİON of DECİSİON 60 days as a rule 30 days as a rule 30 days 30 days 15 days 19

20 SUSPENSION OF EXECUTION If a filed lawsuit relates to a tax at the stage of accrual of tax, its collection suspends If the filed lawsuit is about a tax at the stage of collection, its collection doesn t suspends automatic If the assesment is based on the tax returns submitted with an «objection note», the collection of the tax doesn t suspends automatic Application to the State Council doesn t suspend the implementation of tax court order

21 FILING A LAWSUIT To file o lawsuit in the tax court; the tax should have been assessed the penalty should have been charged for the taxes collected through withholding, the payment to the claimant should have been made and the tax should have been withold by the payer Taxpayers cannot file a lawsuit for the tax bases they declared and taxes assesses over these bases However, it is possible to file a lawsuit, only if declared tax returns with an «objection note»

22 LIABILITY IN THE IMPLEMENTATION OF ADMINISTRATIVE JUDGMENTS Absence of implementation of administrative judgments might pave the way for: Legal Consequence (Compensation) Penal Consequence (Judicial penalty) Administrative Consequence (Disciplinary punishment) 22