Some of the issues included within the Tax Procedures Code are as follows :
a) Required legal books and documents to be issued
Taxpayers (with the exception of small shopkeepers or merchants) are required to maintain the following books :
b) General ledger
c) Inventory register
d) Cash register
e) Negotiable instrument register
In addition to the above-mentioned books, depending on the type of work they perform, taxpayers may also be required to maintain certain other books, such as a production register, a stamp duty register, and a banking and insurance transactions tax register. The books (other than the general ledger) must be notarized prior to their use. Besides public notaries, the Ministry of Finance may authorize other offices to certify legal books of account.
The Turkish Commercial Code requires that legal books of account be maintained in the Turkish language and in Turkish lira. Entries are supposed to be completed within 10 days from the date of a transaction and the cash register should be kept on a daily basis. Taxpayers who use documents such as journal vouchers in their accounting entries, may delay recording their transactions in their legal books up to 45 days.
Legal books of account are maintained on a fiscal-year basis. When recording transactions (i.e. bookkeeping), the requirements of the uniform chart of accounts should be complied with.
Legal books of account can be maintained manually or on computer. The use of computers in bookkeeping does not preclude the certification process mentioned above.
Taxpayers are obliged to compare the information contained in their legal books of account with the physical situation through the counting and the valuation of physical inventories. The physical inventory take, which is normally held at the end of each year, is in certain situations held once in every few years.
Taxpayers are obliged to authenticate the sale of all types of goods and services by means of documentation drawn up in accordance with the Tax Procedures Code. Likewise, all expenses incurred must be authenticated by means of documents of the type listed in the Tax Procedures Code. Such documents include invoices, expense vouchers, independent professional service receipts, retail sales receipts, waybills, and producers' receipts.
If proper documents are not issued at all or are issued erroneously or defectively, penalties will be imposed. If such erroneous acts are repeated, the closure of the workplace or imprisonment is a possibility.
Legal books of account and supporting documentation must be retained (for tax-inspection purposes) for a period of five years from the date of their most recent entry.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Mustafa Camlica, Tax Manager on tel: +90 212 232 1210, fax: +90 212 230 8231, or e-mail firstname.lastname@example.org or enter a text search 'Arthur Andersen' and 'Business Monitor'.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The New Turkish Commercial Code ("New Code") has been enacted and will enter into force in July 2012. One of the major changes brought by the New Code regards mandatory independent audits of corporations.
The law about payment of dividends has remained substantially unchanged for thirty years.
Some comments from our readers The articles are extremely timely and highly applicable I often find critical information not available elsewhere As in-house counsel, Mondaqs service is of great value
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think youve read our Disclaimer).