- Annales de la Faculté Droit d’Istanbul
- Vol: 49 Issue: 66
- Thoughts on an Advance Tax Ruling Given about the Recognition as an Expense of Compensation Paid Pur...
Thoughts on an Advance Tax Ruling Given about the Recognition as an Expense of Compensation Paid Pursuant to Foreign Arbitration Awards
Authors : Irfan Barlass
Pages : 153-166
View : 11 | Download : 8
Publication Date : 2018-10-31
Article Type : Research
Abstract :Compensation paid as a result of foreign arbitration decisions can be taken as expense when determining the tax base. On the other hand, the tax rulings given by the tax administrations look for the enforcement of such decisions as a precondition in order to be able to make an expense depending on the foreign arbitration decisions. However, it is not possible to adopt this approach, just because tax administration want so, which obliges taxpayers to start a legal dispute. It may thought that the tax administration considers the issue as a kind of treasury loss that an untaxed income in Turkey is accepted as an expense for another taxpayer in Turkey. However it is not possible to sustain the evaluation of the tax authorities based on such a reason. In this article, the basic concepts and institutions related to the subject will be explained by using various sources. Later, the illegal consequences of seeking this stipulation by tax rulings, which is not foreseen in the Law, will be discussed.Keywords : Expense In Taxation, Tax Base, Foreign Arbitration Decisions