The constitution of the Republic of Turkey gives exclusive authority to parliament to pass all laws regulating to taxes, customs duties and similar financial responsibilities. However, tax laws are administered by the Ministry of Finance and are often imposed by decrees of the Council of Ministers. In general, each tax is associated with a specific tax law.

The two basic tax procedural laws that are currently in effect are the Tax Procedures Code (Statute 213) and Statute 6183 concerning the procedures for the collection of public claims. These laws contain general principles applicable in all the other laws.

The Tax Procedures Code contains provisions regulating procedures concerning tax liability, various forms of taxation, prescription period and book-keeping, and methods that apply during the valuation of assets, liabilities, and payables. Law 6183 contains provisions relating to the payment of taxes, and the penalties and interest to be imposed on taxpayers who fail to pay their tax obligations.

Provisions relating to the tax courts are contained in the Administrative Judiciary Procedures Act and the governing statute of the Council of State.

A brief summary of the principal features of these laws is to be presented in 9 subsequent releases entitled 'Tax System In Turkey'.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Mustafa Camlica, Tax Manager on tel: +90 212 232 1210, fax: +90 212 230 8231, or e-mail mustafa.camlica@arthurandersen.com or enter a text search 'Arthur Andersen' and 'Business Monitor'.