TAXDISPUTES

NAZALI Attorney Partnership is a full service law firm providing a wide range of legal services to its both national and international clients with its expert and experienced team. Our core objective is to establish a long-term and trust based relationship with our clients and to provide the most convenient service in the most accurate and fastest way.

Our main practice areas are;

Tax

Social Security

Customs

Law

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TAXDISPUTES

As NAZALI, we provide consultancy and litigation services regarding any kind of dispute that may arise from tax assessments to our clients.

The services we provide for resolution of the disputes that we experience most and have extended knowledge are as follows:

Correction of Tax Errors and Complaint Procedure

Tax Return Submission with Reservation and Tax Litigation

Tax Inspection Consultancy

Tax Ruling Application and Execution of the Procedure

Report Assessment Commissions and Representation of Tax Payer

Settlement before and after assessment and Representation of Tax Payer

Provisional Seizure and Accrual

Tax Criminal Law under Article 359 of Tax Procedural Law (“VUK”)

Tax Litigation

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Tax Return Submission with Reservation and Litigation

Tax payers are granted a right to submit their tax returns with reservation in the cases where they have hesitations on whether the tax base they declare is accurate or not due to uncertainty of the related legislation, or lack of or doubt about accuracy of tax authority’s ruling. Accordingly, in order to eliminate their hesitation, they may apply to the judicial authorities and prevent loss of right if there is a favorable court decision.

As NAZALI, we search and examine the legislation, secondary legislation, court decisions and tax rulings deeply and also prepare reservation petitions in order to prevent our clients’ hesitations in all respect. Following the submission of tax returns, we represent our clients before the courts in all levels of jurisdiction.

Correction of Tax Errors and Complaint Procedure

Tax errors are classified as “Calculation Errors” (Errors in tax base, Errors in the amount of tax and Repetition of tax) and “Taxation Errors” (Error in determination of tax payer, Error in the qualification of the taxpayer, Error in subject of the tax, Error in the period of taxation or exemption). Even though the correction of these errors can be maintained through the juridical way with high costs and long durations, ‘’Correction’’ system helps to resolve the disputes at the administrative level with minimum cost and time.

As NAZALI, we execute the application and follow up the correction procedures before tax authorities to eliminate the errors imposed to our clients. In case of a negative response from administrative authorities, we either apply for complaint procedure as an administrative way or resort to courts as a judicial way, in consideration of limitation of period.

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Tax Ruling Application and Execution of the Procedure

Similar with the declaration with reservation, in the cases where clients hesitate in the cases where they have hesitations on a tax issue due to uncertainty of the related legislation, lack of or doubt about accuracy of tax authority’s ruling, tax payers may learn tax authority’s opinion by requesting tax ruling through application.

As NAZALI, we provide consultancy service to our clients at the stage of preparation of the required tax ruling application forms after doing necessary research, and follow the application process on behalf of our clients as well.

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Tax Inspection Consultancy, Representation of Tax Payer before Report Assessment Commission and Tax Litigation

In recent years, to fasten the tax collection and raise treasury income, the number of tax inspections have increased and the previously examined tax payers are happened to be audited repeatedly under the scope of ongoing tax inspections. Due to complexity of the Turkish legislation and the inconsistency between the tax administration and court decisions, taxpayers confront with tax assessment with tax loss penalty.

In this respect, it is very essential to work with an expert consultant to maintain a tax inspection extending even more than 1 year term. Since the explanations made to the tax inspector during the inspection and the testimonies written to the minutes after the inspection plays an important role in terms of determining tax payers’ current situation before both administrative and judicial authorities, the help of an expert may reduce the possible risks and even prevent it.

As abovementioned, we, as NAZALI, support our clients by rendering consultancy services covering the whole inspection procedure by communicating with the tax inspectors and submission of the testimonies to the minutes.

Additionally, following the inspection, we represent our clients before Report Assessment Commission where the taxpayers are listened and happened to be prejudged in case of any dispute arising between the tax minute conclusions and our clients statements.

At the end of the day, in terms of any assessment, we represent our clients before the courts, superior courts and the appeal stage including the services such as preparation and submission of petitions, following the procedures, communicating with the jurisdiction at the most efficient level.

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Representationof Tax Payers in Meetings for Settlement Before and After Tax Assessment

“Settlement” procedure, stipulated under the Tax Procedure Law, is an administrative way of alternative dispute resolution method; that provides partial cancellation of tax assessments (following the inspections) through the negotiations conducted with Administration. The conciliation is preferable after the tax inspection either before or after the tax assessment. In some cases, such as when the tax payer’s account and books are apparently kept contrary to the legislation, the assessment before settlement can result with favorable outcomes while in some cases, especially in areas where the legislation is not clear, but taxpayers can have favorable results after possible interpretations; the settlement after tax assessment might create an easier position for the taxpayers. Here again, to make such a significant assessment requires the support of an expert.

As NAZALI, we provide consultancy to our clients about whether they should decide settlement before or after tax assessment by considering their requirements. Also, after the process is initiated, we represent our clients before the tax authority to finalize the process with the most effective way.

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Following Tax Criminal Lawsuits Under Article 359 of the Tax Procedure Law(Tax Criminal Law)

In accordance with Article 359 of the Tax Procedure Law titled “Smuggling Crime and Its Punishments”, the penalty of imprisonment is envisaged to the following actions;

Making accounting fraud in books and records,

Opening an account on behalf of individuals, not existing or unrelated to the transactions in records,

Recording account and transactions that are required to be tracked in other tax books, documents and other recording environments in a way giving rise to tax base reduction

Destroying the books, documents and records; hiding or preparing misleading documents or using such documents,

Destroying the books, documents which is arranged and kept based on the tax laws or replacing the sheets as well as tearing them

Since firms occasionally have to make business with other parties based on trust, they face charges of committing the crimes listed above as a result of trusting people in charge of signatures. Especially, in practice, the taxpayers are often blamed with the charge of ‘using fake or misleading documents’ because of the abusive people even though they do not have any such intentions. At the end, they get into trouble while dealing with the situation and avoiding to get inside the “KOD” list that might affect their commercial reputation negatively.

As NAZALI, we offer services of litigation and consultancy to our clients not only on tax inspection process but also on litigation processes to avoid any negative impact on their reputation. In this context, through the inspection phase, we offer the basic services like being in continuous contact with the tax inspector, the preparation of petition and submission to the court, monitoring of the process and consultation with judicial authorities.

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Provisional Seizureand Accrual

During the tax inspections, tax inspectors usually feel the need to apply for “securities”, “provisional seizure” and “provisional accrual” agencies stipulated in Law on Collection of Public Receivables numbered 6183 in order to guarantee the public receivable. Even though complying with the law provisions in these agencies are quite essential, it is seen in some cases that the tax authorities ignore such procedure.

As NAZALI, we assist our clients in order to prevent such inappropriate practices during the inspection and in cases of a provisional seizure/accrual request of the inspector, we apply to courts for stay of execution of such request.

In this context, through the inspection phase, we offer the basic services like being in continuous contact with our tax inspector, the preparation of the petition and submission to the court, monitoring of the process and consultation with judicial authorities.

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OUR EXPERIENCES (*)

Tax inspection consultancy provided to a Word wide known computer manufacturer, representation of the firm before settlement commissions and tax courts

Tax inspection consultancy provided to an internationally operating construction firm Representation of a consortium established by internationally operating firms which has undertaken the groundworks of a metropolis.

Tax inspection consultancy provided to an internationally operating firm in renewable energy sector

Tax inspection consultancy provided to an internationally operating firm in telecommunication sector

Tax inspection consultancy provided to an internationally operating firm in medical devices sector

Representation of an internationally operating firm in air-conditioning sector before tax courts.

Representation of an internationally operating firm in plastic and rubber sector before tax courts.

Representation of a well-known Turkish Holding operating in logistics, nutrition, health, retail sale and real estate sectors before tax courts.

Representation of a well-known Turkish firm operating pharmaceuticals sector before tax courts.

Representation of several firms before tax and criminal courts regarding VAT assessments conducted due to using misleading documents under Article 359.

Execution of Tax Ruling application of several firms operating in sectors such as jewelry, medical, pharmaceuticals, mining, marine transportation-port management including their re-structuring transactions.

(*) We keep the name of our clients confidential due to “Attorney-Client Confidentiality”

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Ersin Nazalı, who worked as tax inspector for nine years under Revenue Administration, is expert and has a considerable knowledge in several tax areas especially tax inspections, tax litigation, transfer pricing and tax free re-structuring of companies.

He was born in Denizli in 1979. He graduated from Ankara University, Faculty of Political Sciences and also Dicle University, Faculty of Law. He has master degree from Istanbul University in Financial Law (MSc) and also from King’s College London, School of Law in International Tax Law (L.L.M.). He is currently working on his PhD Thesis named, “Transfer Pricing from Tax Perspective” in İstanbul University, Fiscal Law Department.

After his graduation from university in 2001, he worked as tax assistant in Arthur Anderson and then as deputy inspector in Prime Ministry Board of Inspection. In 2004 he was assigned as Deputy Tax Inspector upon his success in the entrance exam, in 2007 he was assigned as Tax Inspector.

In academic year 2008-2009, he served as part time lecturer in Aydın University and he attended as both debater and instructor in several conferences and seminars organized by various institutions and organizations.

He played role in legislation of tax laws as of March 2009 after assigned in Tax Council. He also played role in Consultancy Commission which is an organ of Tax Inspectors Board as member and reporter.

He is one of the founders of “Tracking of Tax Disputes” Department within Tax Inspectors’ Board.

As of August 2012, he works as tax consultant and attorney in private sector.

There are more than eighty articles published in several tax journals.

Ersin Nazalı who is married and father of one child, has a very good command of English.

Publications

Liquidation, Merger, Acquisition, Spin-off and Conversion of Joint Stock and Limited Liable Companies in respect of Tax and New Turkish Commercial Code (3rd Eddition,2013)

Work Place/Permanent Establishment in respect of Tax Treaties and Turkish Tax Law (About to be published)

Tax of Law (Selected Articles) (About to be published)

Taxation of Securities within the Scope of European Union Harmonization (Unpublished, Proficiency Study-Tax Inspectors’ Board, Istanbul, 2007)

Criminal and Tax Liability of Company Directors (Unpublished, Proficiency Study-Prime Ministry Inspectors Board, Ankara, 2003)

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Ersin NAZALI BSc, LLB, MSc, LLMYönetici Ortak, Eski Hesap Uzmanı,Avukat, Yeminli Mali Müşavir

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She was born in 1971 in Ankara. She has graduated from Ankara Vocational High School of Finance in 1989 and she has graduated from Ankara University, Faculty of Political Sciences in 1993. Between 1989-1995 she has worked under Undersecreteriat of Customs. She has been assigned as Deputy Tax Inspector in 27.10.1997, Tax Inspector in 2000 and Chief Tax Inspector in 2007. While she was a Chief Tax Inspector under Tax Inspection Board she left her job in 2013.

She has an unpublished competence research themed ‘Banking Sector in Turkey and The Impacts of Financial Crises on Banks’; a scientific research report themed ‘International Short Run Capital Movements and Feasibility of Tobin Tax’ and a seminar report themed ‘Investment Incentive Treatments in Turkey and World’.

Mükerrem Yanar who has been in England for one year between 2001-2002 has good command of English.

She is married and mother of two children.

Duygu Kapucu, who has been working as Certified Public Accountant, focuses on tax consultancy and audit services. She is especially engaging in tax audit (tax due diligence, tax certification, special purposed audits) and also restructuring projects such as tax-free spin-off, mergers & acquisitions. She is expert and has a considerable knowledge in several tax areas especially tax inspections, transfer pricing and tax free/efficient international and local structuring of companies.

She was born in 1985 and gained a BA in Political Sciences from Istanbul University 2008and graduated with a BA in English Language from Istanbul University in After her graduation from university, she has provided consultancy, tax certification and audit services to local and foreign investors under one of big audit companies for 5 years and then for a multinational law firm for 1,5 year. In addition to her Certified Public Accountant License, she holds Capital Markets Board(CMB) – Independent Audit Licence as well.

She has excellent command of English.

Mükerrem YANARPartner, Tax DepartmentCpa, Former Tax Inspector

Duygu KAPUCUTax Manager, CPA

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Begüm Solak, who has been working as lawyer since 2009, focuses on tax litigation and consultancy services. She is especially engaging in restructuring projects such as tax-free spin-off, mergers & acquisitions, capital increase and decrease, recovery of financial situations of the companies in bankruptcy or technical bankruptcy. She is expert and has a considerable knowledge in several tax areas especially tax inspections, tax litigation, transfer pricing and tax free/efficient structuring of companies and subsidiaries.

She was born in Ankara in 1986. She completed her middle and high school education in TED Ankara College and graduated from Bilkent University, Faculty of Law. During her university years, she has done internships in Under Secretariat of the Prime Ministry for Foreign Trade, After her graduation from university, she has provided consultancy and litigation services on tax and corporate law to local and foreign investors under Istanbul office of big four companies, tax and legal services company, for 3,5 years and then for a leading international law firm in Istanbul for 1,5 year. She has master degree on “Law of Economics” in Galatasaray University and excellent command of English. Currently, she is currently working on her thesis “Capital Movements Within Companies and Tax Consequences”.

Gözde Saruhan, who has been working as lawyer since 2013, focuses on Tax and Corporate Law. She has a knowledge in several tax areas especially tax inspections, tax litigation and consultancy services, transfer pricing and tax free/efficient structuring of companies and subsidiaries.

She was born in Uşak in 1989 and she completed her middle and high school education in Uşak, and graduated from Istanbul Bilgi University, Faculty of Law. She also studied at Erasmus Universiteit Rotterdam within the scope of Erasmus Exchange Programme.

During her university years, she has done internships in several leading law firms in Istanbul.

After her graduation from university, she has provided consultancy and litigation services on tax and corporate law to local and foreign investors under Ernst&Young Istanbul office of big four companies’ tax and legal services company for 2 years.

She has master degree on “Law of Economics” in Istanbul Bilgi University and excellent command of English. Currently, she has master degree and her thesis named, “Distribution of Covered Gains with Transfer Pricing”.

Begüm SOLAK EKLERAttorney at Law

Gözde SARUHANLL.M. Attorney at Law

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The explanations in our brochure are not meant to be legal opinion or any kind of advice. They solely contain general information on the issue. Therefore, NAZALI cannot be held responsible for any problems arising out of the content of the brochure. We recommend that you should take legal advice on the matters that state in the brochure before taking any actions. The brochure contains personal data with regard to Protection of Personal Data Law Numbered 6698 and the related legislation; it is being submitted to third parties shall not be interpreted in any way as the owners of the personal data have given consent to processing and/or using of their personal data with any other purposes by those third parties. The brochure cannot be copied, transferred and/or duplicated completely or partially without NAZALI’s permission. All rights are reserved.

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