Tax penalties, audit management and dispute reporting
Technical financial analysis under Law No. 3568 Art. 2/A-c in tax audits, invitations to explain, settlement and court proceedings.
Process steps
Notification and deadline
Electronic notifications are deemed served at the end of the fifth day after delivery. The general deadline is 30 days for an assessment notice and 15 days for a payment order.
Technical analysis
The tax audit report or assessment committee decision is reviewed for statute of limitations, tax base errors, VAT deductions and valuation rules.
Choosing a route
Depending on the financial position and the nature of the findings, the VUK 376 reduction, settlement or litigation is chosen.
Report and representation
Preparation for the settlement meeting; a technical financial opinion is prepared for court proceedings.
Tax assessment scenario comparison
Shows the amount payable under four possible outcomes, based on the tax and penalty in an assessment notice.
VUK Art. 376 reduction
Penalty halved, tax paid in full within 30 days
375,000.00 TL
Saving: 125,000.00 TL
Post-assessment settlement
Only penalties are negotiable; rate is an assumption
350,000.00 TL
Saving: 150,000.00 TL
Court case (lost)
Full tax and penalty, plus default interest
500,000.00 TL
Court costs may also arise
Court case (won)
If the assessment is annulled, the tax difference and penalties are cancelled
0.00 TL
Contact us for an assessment of whether your case is suitable for litigation.
VUK Art. 376: half of the tax loss penalty is waived; tax and default interest are paid in full. Since Law No. 7524, settlement covers penalties only and no further reduction applies to settled penalties. Settlement results depend on the committee; the rate here is only an example. Default interest is not included.
Challenging a payment order: 15 days
The general deadline to file a lawsuit against taxes and penalties is 30 days from notification of the assessment notice. For a payment order (ödeme emri) issued for unpaid public receivables, however, the deadline is shorter: a lawsuit can be filed with the tax court within 15 days of notification (Law No. 6183, Art. 58). If the debt is not paid or assets are not declared within the same 15 days, enforced collection including attachment may begin.
- The lawsuit may claim that the debt does not exist, has been partly paid, has been deferred or is time-barred.
- At the payment order stage, a finalised assessment cannot be reopened; this is why the 30-day deadline at the assessment stage matters.
- If the lawsuit against the payment order is unsuccessful, the debt is collected with a 10% surcharge.
Other dispute services
Audit minutes and review committee preparation
Drafting explanations to audit minutes in line with the Tax Procedure Law and technical preparation for hearings before the report review committee.
Fake invoice (SMİYB) cases and invitations to explain
Documenting genuine commercial flows with bank, stock, transport and yield analyses; preparing responses to invitations to explain under VUK Art. 370. See the article proving genuine transactions in SMİYB audits.
Technical financial opinion (expert report)
A written opinion on tax base errors, inventory balance and accounting technique that can be submitted to the court file.
Detailed comparison of the three routes: Tax assessment notice received: which route to take within 30 days? You can estimate the surcharge with the late payment surcharge calculator.
Frequently asked questions
What does the VUK Art. 376 reduction cover?
Half of the tax loss penalty is waived. The tax itself and default interest are not reduced, and the reduced amount must be paid or secured within 30 days.
Can the tax itself be negotiated in settlement?
Since the amendment by Law No. 7524, settlement is only possible for penalties; the tax itself cannot be settled.
What is the deadline to challenge a payment order?
15 days from notification (Law No. 6183 Art. 58). It is shorter than the general 30-day deadline for assessment notices and cannot be extended.
What happens if I go to court?
Filing suspends collection. If the case is won, the tax difference and penalties are cancelled; if it is lost, the tax, the full penalty and default interest are payable. The decision should therefore depend on whether the findings can be technically rebutted.