Posted by meb at September 10th, 2009
Explaining the main points of the record-breaking tax fines against DoÄŸan Media Group, Soner Gedik, the groupâ€™s chief financial officer, says the levy has no legal basis. The levy rests upon the claim that share transfers are not exempt from value added tax, but the law clearly states the opposite, Gedik says. Meanwhile, a brokerage says the tax decision has hit investor confidence in Turkey
Evaluating the record 3.755 billion Turkish Liras ($2.5 billion) tax levy imposed on DoÄŸan Media Group, Chief Financial Officer Soner Gedik said the decision has no legal ground. Gedikâ€™s arguments against the fine, the second against the group this year, were also supported by a prominent tax expert.
Speaking to daily Vatan, Gedik answered questions about the fine, emphasizing that transfer of shares is a practice exempt from value added tax, or VAT, and the share transfer between DoÄŸan Media Group, or DMG, companies, created no extra revenue for the group. Gedik also estimated that in the past four years, share transfers surpassing $128 billion have been conducted in Turkey. â€œNearly three-fourths of this amount was conducted as common stock transfer [as was the case in DMG],â€ he said. â€œAfter this [practice] against us, I guess all such sales will be regarded as cloudy. If the interpretation of the Finance Ministry official is correct, all these sales will be inspected.â€ (more…)