The questions below offer a general framework on remedies against taxes and tax penalties, objections to payment orders and the liability of managers for public debts. In a specific case, time limits, documents and the regulations in force are assessed separately.
Showing 1–6 of 6 questions
How is the remedy against a tax or a tax penalty determined?
A notice, penalty, payment order or seizure measure is subject to different routes of application and different lawsuits.
First it is determined whether the document is a tax audit report, an assessment or penalty notice, or a payment order relating to the collection stage. The Tax Procedure Law (VUK), Law No. 6183 and the provisions of the Administrative Procedure Law (İYUK) are assessed together. The date of service, the taxation period, the tax base and calculation, the settlement (uzlaşma) or reduction options and the act that is the subject of the lawsuit must be separated out. It cannot be assumed that making an administrative application automatically suspends all time limits for lawsuits and collection.
Which objections are examined against a payment order based on a tax debt?
In a payment order, whether the principal debt has legally arisen, payment, limitation and the conditions of the proceedings are assessed separately.
Under Article 58 of Law No. 6183 on the Procedure for Collection of Public Receivables, the period for filing a lawsuit against a payment order is, as a rule, 15 days from the date of service. The legal scope of objections that the debt does not exist in whole or in part, that it has been paid or that it is time-barred, together with the finalization and service records relating to the principal debt, should be examined jointly. In payment orders directed at a manager or partner personally because of a company debt, the capacity in which they are liable and the conditions for collection from the company are assessed separately. The period for a lawsuit against a tax/penalty notice should not be confused with the period for a lawsuit against a payment order.
How is a company manager’s liability for public debts assessed?
A company manager’s liability is determined by the power of representation, the breach of the obligation and the collection conditions required by law.
Article 10 of the Tax Procedure Law and Article 35 (repeated) of Law No. 6183 form different legal frameworks. The liability of a partner in a limited liability company is also separate from the liability of a representative. The period of the company debt, the manager’s dates of office and representation, the finalization of the receivable, the enforcement and collection attempts made against the company, and the notifications should be examined. The mere fact that a person is registered as company manager does not show that every public debt can be collected from that person unconditionally and automatically.
Does a tax audit report directly make a tax debt final?
A tax audit report does not, on its own, mean a final and collectible debt in every case.
Assessment and penalty notices, service, the settlement or lawsuit process and the status of finalization must be examined separately. An objection to the findings in the report can be prepared with books, documents and comparative records.
Does collection stop automatically once a tax lawsuit is filed?
Different rules apply depending on whether the dispute concerns the initial assessment or accrual act, or the collection stage.
The effect of a lawsuit against a payment order must be distinguished under Article 27(4) of the Administrative Procedure Law (İYUK) and under Law No. 6183. The act that is the subject of the lawsuit, and whether a separate request for a stay of execution is necessary, should be determined.
Is the manager of a limited liability company personally liable for all tax debts?
No; special conditions for the liability of a legal representative and the period of the debt must be examined.
Article 35 (repeated) of Law No. 6183, Article 10 of the Tax Procedure Law (VUK) and Article 35 concerning the partner of a limited liability company are different liability provisions. The period to which the debt relates, the length of the managerial office, the power of representation and the possibility of collection from the principal debtor, the company, are important.