Settlement is a specific mechanism that is being desinged in the Turkish Tax Law which is aiming to find a resolution between the Tax Revenue Authority and the taxpayer regarding tax disputes. This specific system aims to solve the disputes without any legal actions.
With the communiqué published in the Turkish Official Gazette dated 23 July 2022, the amounts subject to disputes from tax penalties have been changed. Changes were also made regarding the composition and functioning of the Disputes Commissions.
Accordingly, in the city of Istanbul, tax disputes up to 15 thousand TL are to be resolved within the body of the Directorate, up to 70 thousand TL tax disputes are to be resolved under the tax office directorate, up to 1.5 million TL tax disputes are to be resolved under the Istanbul Tax Office Presidency and 3.5 million TL. Tax disputes up to TL 15 million will be subject to settlement within the scope of Large Taxpayers Tax Office, tax disputes up to 15 million TL will be subject to settlement under the Tax Offices Coordination Reconciliation Commission, and tax disputes over 15 million TL will be subject to reconciliation under the Central Reconciliation Commission.
