The outcome in a case of failure to produce books and documents is determined by first examining whether the request came from a competent authority, which records it covers, whether it was properly served and what time was granted for production. Then the actual possibility of production, force majeure and delivery records are assessed. Ex officio assessment, rejection of the VAT deduction, special procedural irregularity penalty and criminal investigation are not a single sanction that depends on the same conditions. 1 2
Keeping the books with an accountant, the company ceasing its activity or the records being kept electronically does not by itself remove all production obligations. On the other hand, imposing a consequence for a record that does not actually exist, is not subject to a retention obligation or was not validly requested under the law should be discussed separately. The starting point of a file lies in the steps taken before the sentence “not produced.”
What Is Checked in a Request Letter for Books and Documents?
The issuing authority, the addressee, the subject of the review, the periods, the books and documents requested, and the method and deadline of delivery must be identified. Physical service and electronic service are examined as separate legal records. The date on which the letter reaches the system, is read and is legally deemed served may not be the same. In particular, the deadline should not be calculated from the date of an e-mail or text message alone. 1
Where the law sets no specific period for production, the period set by the administration under Article 14 of the Tax Procedure Law (VUK) applies, and it cannot be less than fifteen days. Whether a specific provision applies to the particular request is also checked. If the period is insufficient or there is a technical obstacle, an extension should be requested in time, stating the reasons and the records that can be submitted. Granting the request does not in itself mean that the period was extended. 1
How Is a Defense of Defective Service Made Concrete?
The service documents, electronic delivery records, the company’s address on the relevant date and its representation status should be submitted together. Instead of saying “the letter did not reach us,” the missing legal step should be identified. The rules that apply to tax notifications from the administration and the rules for court service should not be confused.
In its decision of 23 October 2024, E.2024/352, K.2024/968, the Tax Litigation Chambers Board of the Council of State (Danıştay Vergi Dava Daireleri Kurulu, VDDK) held that before records not produced are examined in court, the proper service of the request letter must be reviewed. In that decision, tax assessments and penalties based on a notice given without establishing that the company could not be found at its known addresses, and without applying the relevant tax notification rules, were not found lawful, and the appeal on points of law was rejected. The decision’s assessment of the address rules depends on the legislation in force at the time of the dispute. The same address conclusion should not automatically be carried over to the present file. 4
How Long Do Retention and Production Obligations Last?
Under Article 253 of VUK, the basic retention period is five years, starting from the calendar year following the relevant year. Article 256 of VUK regulates the production of records that must be retained upon a competent request. However, a five-year period does not mean that all commercial and legal documents can safely be destroyed at the end of the fifth year. Retention obligations under other laws and the need for evidence in a continuing dispute are also assessed separately. 1
Items that affect later periods, such as losses, costs or deductions carried forward from a previous year, may still require proof. Whether the administration’s sanction for non-production applies, and whether the taxpayer proves a right it asserts in a later period, are separate questions. The retention schedule should be built by document type and legal function; a single bulk destruction date should not be used. The article on proof and evidence in tax lawsuits examines this topic under a separate heading.
Is the Berat Alone Sufficient for Electronic Ledgers?
A berat (the electronic ledger approval certificate) is not the full accounting content that replaces the relevant e-ledger file. The legibility of the records requested, the period to which they belong and the integrity of the file must be preserved. The e-ledger, the berat, e-invoices and the technical information needed for access should be managed together. Files that can and cannot be produced should be listed separately. 1
If the service provider has closed or the password has been lost, a bare statement to that effect is not enough. Backup, transfer, access and recovery records should be investigated, and the start of the technical obstacle and the steps taken to resolve it should be documented. The difference between an actual failure and a failure to meet the retention obligation is assessed on the basis of concrete data.
How Is Force Majeure or a Claim of Loss Demonstrated?
Force majeure under Article 13 of VUK and its consequences under Article 15 are examined according to the nature of the event. In a claim of fire, disaster or loss beyond one’s control, it matters which records were affected and when the event occurred. Damage to a warehouse does not necessarily mean that all electronic and third-party records were also unavailable. 1
The fire brigade or police report, the insurance record, the damage assessment, the technical examination and, where necessary, the certificate-of-loss procedure (zayi belgesi) should be evaluated. The conditions for a certificate of loss under commercial law do not replace the force majeure assessment under tax law. Even where the existence of a document is important, it is separately examined whether the event actually prevented production. When an obstacle is raised, accessible records should be preserved and the part that can be delivered should be assessed.
What Are the Tax and Criminal Consequences of Non-Production?
Failure to produce books and documents may matter for an ex officio assessment under Article 30 of VUK. However, the existence of grounds for an ex officio assessment does not mean that the tax base can be set at any amount. The calculation method, the period, the underlying data and, where available, the records favoring the taxpayer should be open to review. 1
The conditions for the VAT deduction are also important. The period in which the deduction was rejected, the effect of carried-forward VAT and the records that were not produced should be shown. A blanket rejection of all deductions and a rejection based on the authenticity of specific invoices are not the same dispute. Where the administration relies on two grounds at once, the defense must address both. 2
For a special procedural irregularity penalty, the obligation, request and notification conditions under Article 355 (repeated) of VUK are examined separately. In a criminal investigation, the elements of the concealment offence under Article 359 of VUK, the existence of the records, a competent request and the conduct of the person concerned are assessed. Producing records late before the tax court does not necessarily remove all sanctions for failing to produce them on time. 1 For a detailed assessment, the article on objection to the tax loss penalty may be consulted.
Can Books and Documents Be Submitted to the Tax Court?
The possibility of having books and documents that were not produced during the review examined by the court is important. The case-law unification decision (içtihadı birleştirme) of 8 February 2019, E.2013/3, K.2019/1, explained in the 2024 VDDK decision, indicates that where records not produced without force majeure are invoked before the court, they should be requested and examined, and the view of the tax administration should also be obtained. This route is not an automatic acceptance of the VAT deduction. 4
When asking the court to consider records, state where they are, which periods they belong to, how their integrity is maintained and how they will be delivered. Interim rulings of the court should not be left unanswered by merely saying that the records can be submitted later. The administration’s objections to the records should also be answered. A list drawn up afterwards should not be presented as the original of the statutory books or as verifiable electronic content.
How Should the File Be Prepared and Deadlines Monitored?
- All request letters should be assembled together with all service and access records.
- For each book and document requested, state whether it is available, delivered, missing or inaccessible.
- The delivery record should state the period, file name, quantity and attachments.
- Force majeure and technical obstacle documents should be arranged in chronological order.
- A separate legal assessment should be made for the assessment, the VAT calculation, the special procedural irregularity penalty and any criminal allegation.
When the tax assessment notice is served, the general thirty-day tax lawsuit period and the special provisions applicable to the case are assessed. The claims and actions in dispute should be clearly separated; whether different periods can be brought in one petition should be checked against the conditions of Article 5 of the Administrative Procedure Law (İYUK). The effect of filing an action on collection is determined by the scope and exceptions of Article 27 of İYUK. 3 For the procedure, the article on how a tax lawsuit is filed may be consulted.
Conclusion
The file on failure to produce books and documents requires that each stage, from the request letter to the sanction, be reviewed separately. A valid service, an appropriate period, a retention obligation, actual access and the integrity of the records must be established before any consequence is imposed. The possibility of submitting records to the court can be used; however, it does not replace the timely production obligation or the separate conditions of the sanctions.
Frequently Asked Questions
If the books are with an accountant, does the obligation fall away?
Not by itself. The request and delivery arrangements described in “What Is Checked in a Request Letter for Books and Documents?” should be set up, and the access problem should be documented. Back to the related explanation
Is presenting the e-ledger berat sufficient?
Not in every case. The content of the ledger and the conditions of legibility described in “Is the Berat Alone Sufficient for Electronic Ledgers?” are also assessed. Back to the related explanation
Can I give the court documents I did not produce during the review?
You may request that the court examine them under the relevant case law. “Can Books and Documents Be Submitted to the Tax Court?” explains that this is not an automatic acceptance of the VAT deduction. Back to the related explanation
Do a fire or a loss remove all consequences?
The nature of the event and its effect on production are examined. The document and scope assessment in “How Is Force Majeure or a Claim of Loss Demonstrated?” is required. Back to the related explanation
Sources and legal bases
- Tax Procedure Law No. 213 (VUK), Articles 13–15, 30, 93–109, 253, 256, 355 (repeated) and 359. Source text
- Value Added Tax Law No. 3065 (KDV), Articles 29 and 34. Source text
- Administrative Procedure Law No. 2577 (İYUK), Articles 5, 7, 20, 27 and 31. Source text
- Tax Litigation Chambers Board of the Council of State (Danıştay Vergi Dava Daireleri Kurulu, VDDK), 23 October 2024, E.2024/352, K.2024/968; in particular the assessment on the merits, pp. 7–9. Source text