04 January 2018 Turkish Constitutional Court ruling addresses need for predictability and certainty of tax provisions Based on an individual application made to the Turkish Constitutional Court regarding the taxable nature of the withholding tax imposed on the investment allowance, it was ruled that the right to property was violated and a retrial should be granted. In this individual application decision dated October 26, 2017 (no. 2014/13518), the Turkish Constitutional Court stated that there are different case laws regarding the nature of the withholding tax applied on profits subject to the investment allowance and there is lack of uniformity in the interpretation of the tax provision, notwithstanding that the provision is not newly enacted. Therefore, in the current case, the intervention to the property right through taxation is not based on a law that provides the criteria of predictability and certainty. Document ID: 2018-0018 |
