07.07.2022/49
About the Amendments to the Tax Procedure Law and Turkish Commercial Code with Law No. 7417
Law No. 7417 was published in the Official Gazette No. 31887 on 05.07.2022. The amendments made to the Tax Procedure Law and the Turkish Commercial Code by this law are listed below.
Authority Granted to the Ministry of Finance Regarding the Ultimate Beneficial Owner Notification
With this law, an additional clause (9) was added to the first paragraph of Article 257 of the Tax Procedure Law No. 213, as follows:
“To determine the scope of the ultimate beneficial owner for legal entities and organizations without legal personality, to impose the obligation to report those falling under this scope, to determine the content, format, standards, submission deadlines, and methods for the notification, to make changes to these, to define the notification obligation based on sectors, taxpayer groups, and taxpayer statuses, to impose the obligation to store and present the information and notifications in electronic form, and to determine other procedures and principles regarding the implementation of these provisions.”
With this paragraph, the Ministry of Finance has been granted the authority to regulate the notifications of the ultimate beneficial owner.
Increase in Certain Special Procedural Penalties
With Law No. 7417, the minimum amount of the special procedural penalty for failing to issue, receive, or issue invoices, expense receipts, producer receipts, or freelance professional receipts (including those that should be issued electronically) in accordance with the first paragraph, item (1) of Article 353 of the Tax Procedure Law No. 213 has been increased from 240 TRY to 1,000 TRY when these documents are not issued or received, when they contain different amounts than the actual amount, or when they should be issued electronically but are issued on paper, except for cases specified by the Ministry of Finance.
The penalty for failure to issue, use, or keep documents like retail sales receipts, receipts from cash register devices, passenger tickets, delivery notes, transport invoices, passenger lists, daily customer lists, and other documents required by the Ministry of Finance has also been increased from 240 TRY to 1,000 TRY for each document.
Furthermore, the total special procedural penalties for each document type have been increased from 12,000 TRY to 50,000 TRY, and the total penalties that can be imposed in a calendar year have been increased from 120,000 TRY to 500,000 TRY.
Additionally, with the addition of a sentence to the first paragraph of Article 355 of the Tax Procedure Law, a penalty has been introduced for service providers involved in electronic commerce who fail to fulfill their notification obligations. These service providers will face a penalty five times the special procedural penalty specified in paragraphs (1) and (2) of Article 355, and twice the penalty specified in paragraph (3) if they fail to comply.
Furthermore, those who fail to comply with the obligations brought by item (9) of the first paragraph of Article 257 will face a penalty three times the special procedural penalty specified in item (1).
Deadline for Filing a Claim in Case of Loss of Books and Documents
With the amendment made by Law No. 7417, the period for a merchant to request the recovery of lost books and documents (due to disasters such as fire, flooding, or earthquakes) from the competent court where their business is located has been extended from “fifteen” days to “thirty” days from the date they became aware of the loss.
You can access the related Law here.
Best regards,
BİLGENER
