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Tax Law is the branch of law that ensures the fair, proportionate, and lawful determination of fiscal obligations imposed by the state to finance public services.
However, this field is not limited solely to the collection of taxes; it regulates the entire relationship between the tax administration and the taxpayer.
It is just as important for the administration to exercise its authority within limits as it is for taxpayers to fulfill their obligations correctly.
Many tax lawsuits actually arise from the administration’s procedural errors, incorrect notifications, or tax base calculation errors.
At SVK Law, our goal is to stand by our clients not only during the litigation phase but from the very beginning of the process — before the declaration.
“Managing the process before the tax audit begins, documents are collected, or a defense is prepared is the key to a winning strategy.”
Tax law begins with Article 73 of the Constitution:
“Everyone is under the obligation to pay taxes according to their financial strength to meet public expenses.”
This principle is the foundation of justice in tax law.
Key Concepts:
Tax (Vergi): An unrequited, compulsory, statutory fiscal obligation.
Taxpayer (Mükellef): The real or legal person obliged to pay the tax debt.
Tax Base (Matrah): The economic value upon which the tax is calculated.
Tax Rate (Vergi Oranı): The percentage rate determined by law.
Tax Liability (Vergi Borcu): The debt arising at the end of assessment, notification, accrual, and collection procedures.
Sources:
Constitution (Articles 73, 125, 155)
Tax Procedure Law (VUK)
Income Tax Law, Corporate Tax Law, VAT Law
Council of State (Danıştay) and Constitutional Court precedents
Example: If there is an allegation that a company has issued a “fake invoice”, the administration cannot prove this solely with a tax inspector’s report; the chain of evidence must be concrete. This was clearly emphasized in the Council of State 4th Chamber Decision E. 2022/4513.
For a tax to be legally valid, it must comply with the following principles:
Legality Principle: Tax can only be imposed, amended, or abolished by law.
Equality Principle: No discrimination is made between taxpayers.
Certainty Principle: The rate, subject, and base of the tax must be clear.
Ability to Pay Principle: Everyone pays taxes according to their financial strength.
Generality Principle: Tax liability covers all income elements.
These principles are not just abstract concepts — for instance, the administration cannot issue a tax penalty with vague reasoning. In such a case, the action is annulled when a lawsuit is filed.
Tax liability does not arise instantly; it matures within a four-stage administrative process:
1. Assessment (Tarh) The calculation of the tax and its determination in the name of the taxpayer (VUK Art. 20). Example: Additional assessment by the administration after a Corporate Tax return.
2. Notification (Tebliğ) Notifying the taxpayer of the tax or penalty notice. Irregular notification (wrong address, delivery to an unauthorized person) is a ground for annulment in court.
3. Accrual (Tahakkuk) The finalization of the tax debt and its becoming payable.
4. Collection (Tahsil) Payment of the debt; if not paid, the process of Collection of Public Receivables begins (Law No. 6183).
As SVK Law, we conduct procedural audits step-by-step in correspondence with the tax administration.
A tax audit is the administration’s process of verifying the taxpayer’s declarations. Before the audit begins, the administration sends an “audit notification letter” to the taxpayer; then, a request for information/documents follows.
Taxpayer’s Obligations:
Keeping documents for 5 years.
Answering the auditor’s questions.
Not refraining from providing information.
As a result of the audit, a “Tax Audit Report (TAR)” is issued. This report is the most critical evidence during the reconciliation or litigation phase.
The SVK Law Difference: We analyze every report on the axis of accounting, law, and judicial practice. Thus, we catch errors before the report is even sent to the tax office.
According to the Tax Procedure Law, penalties are gathered under three main headings:
Tax Loss Penalty: Causing a loss of tax revenue.
Irregularity Fine: Non-compliance with document order.
Special Irregularity Fine: Technical errors such as lack of invoices, receipts, or e-archive documents.
These penalties are sometimes applied incorrectly. For example, the administration cannot impose a “tax loss penalty” for an accounting error made without intent. At this point, SVK Law strategically executes the trio of objection petition + reconciliation process + litigation.
There are three main groups of resolution methods:
1. Reconciliation (Settlement) A solution resembling a negotiation between the taxpayer and the administration, conducted within a legal framework. Tax amnesty or restructuring laws are also evaluated in this context.
2. Tax Courts A lawsuit can be filed against the administration’s decision within 30 days. The judiciary examines both the procedure and the substance of the action.
3. Appeal and Cassation Process Regional Administrative Court and Council of State stages; here, “legal errors” are at the forefront.
SVK Law Strategy: We create a “tax risk analysis report” before filing a lawsuit and strengthen weak points in evidence. Thus, we plan the case as if we have already won.
A tax debt ceases in the following ways:
Payment (The most natural form)
Offset or Cancellation
Statute of Limitations (VUK Art. 114)
Amnesty / Restructuring Laws
Statute of Limitations Example: If an error was made in an income tax declaration for the year 2020, the administration can conduct an audit until the end of 2025; afterwards, it is time-barred.
For corporate clients, SVK Law handles tax planning with a preventive law approach. By analyzing companies’ financial structures, transaction records, and contracts, we:
Eliminate unnecessary tax burdens.
Apply legal deductions and incentives.
Reduce potential penalty risks.
Provide consultancy on Transfer Pricing and VAT Refunds.
This service creates a security shield before litigation, not just after.
The period for filing a lawsuit against tax and penalty notices is 30 days from the date of notification. If no application is made to the tax court within this period, the assessment becomes final
Under normal conditions, a tax audit should be completed within one year. However, in some cases (e.g., complex files, group companies), this period can be extended up to six months.
Filing a lawsuit after the penalty notification does not stop the payment obligation. However, if an application is made to the court with a request for a “stay of execution,” collection can be temporarily halted.
All real and legal persons with tax debts can benefit from restructuring by applying within the dates specified in the law. With these regulations, default interest is reduced, and installment options are provided.
Ex officio assessment (re’sen tarh) can be made against a taxpayer who does not present documents, and the administration can determine tax based on assumptions. Additionally, a special irregularity fine is applied.
Yes. If the tax receivable is not collected within 5 years, it becomes time-barred. However, this period can be interrupted by actions such as filing a lawsuit or notification of a payment order.
If the tax court annuls the action and there is gross negligence by the administration, a compensation lawsuit (full remedy action) can be filed in administrative jurisdiction.
A reconciliation request can be made within 30 days after the tax and penalty notice is notified. If reconciliation is achieved, no lawsuit is filed, and the transaction becomes final.
SVK Law provides specialized expertise in the field of Tax Law with its offices in Izmir and Bursa.
We focus on the following in every file:
Income, Corporate, VAT, Withholding, and SCT disputes
Tax audit preparation and defense
Reconciliation, voluntary disclosure (pişmanlık), and restructuring applications
Tax Court cases and Council of State appeal processes
Corporate tax planning, incentives, and exemption consultancy
Tax consultancy for foreign investors
“Our priority in every file is to provide a fast, documented, strategic, and proportionate solution.”
Objections to tax penalties, tax conciliation, administrative litigation processes, and consultancy on tax obligations.
Legal support in reinstatement lawsuits, severance and notice pay, overtime receivables, mobbing, work accidents, and mediation processes.
Expertise in uncontested and contested divorce, custody, alimony, matrimonial property regimes, and domestic protection orders.
Debt collection, enforcement proceedings without judgment, seizure, removal of objection, bankruptcy, and collection management.
Consultancy in estate distribution, reduction lawsuits, annulment of wills, and reserved portion cases.
Effective defense during investigation and prosecution stages; legal representation in detention, arrest, judicial control, and appeal processes.
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