At Kapusuzoğlu, we assist businesses and individuals in navigating the complexities of tax disputes under Turkish law's ever-evolving and dynamic framework, and deliver strategic solutions tailored to each client's unique circumstances. Our tax controversy practice is designed to assist clients at every stage of a tax dispute, from initial inquiries and filings to complex litigation before higher judicial bodies and criminal defense. Whether you face inquiries, audits, litigation, or criminal proceedings, we offer comprehensive support throughout the process, combining deep technical knowledge of Turkish tax laws with years of frontline practical experience to protect your rights, minimize risks, safeguard your financial interests, and achieve favorable outcomes.

Here are the key services we deliver throughout the lifecycle of a tax dispute:

i. Tax Inquiries Assistance

ii. Voluntary Disclosures Assistance

iii. Tax Audit Assistance

iv. ADR Representation

v. Tax Litigation

vi. Tax Crime Defense

The following sections describe the services we offer at every stage of a tax controversy:

i. Tax Inquiries Assistance

Tax authorities in Turkey routinely conduct preliminary inquiries to verify taxpayer compliance and detect potential irregularities. These inquiries may involve requests for documentation, explanations regarding specific transactions, or clarification of tax positions taken in filed returns, often requiring taxpayers to submit information within strict timelines. Failing to respond accurately and in a timely manner can result in severe penalties. On the other hand, hasty and uncritical responses may risk unintentional self-incrimination, or invite unnecessary attention, audits and assessments for seemingly unrelated other business activities. Therefore, it is essential to diligently predict the possible outcomes of such inquiries in order to minimize or eliminate fines, safeguard your compliance record, and not inadvertently prejudice your future position. Our firm provides comprehensive assistance during tax inquiries, identifying the exposure, coordinating with clients' accounting teams, helping clients anticipate the authorities' underlying concerns and respond effectively, prepare complete and accurate documentation, and communicate strategically with tax authorities. We ensure that our clients' rights are protected throughout the inquiry process while maintaining constructive dialogue with the administration to resolve matters efficiently and prevent escalation to formal audits or assessments.

ii. Voluntary Disclosures Assistance

Turkish tax law provides mechanisms for taxpayers to rectify past non-compliance, often with reduced penalties or criminal non-prosecution in defined circumstances. However, such disclosures can be daunting, with risks of further scrutiny if mishandled. Our firm guides clients through the voluntary disclosure process, identifying unreported liabilities, assessing the risks and benefits of disclosure, helping them make legally and financially well-informed decisions, and ensuring they avoid putting other financial periods or transactions at risk of exposure.

iii. Tax Audit Assistance

Tax audits by the Turkish Revenue Administration are comprehensive examinations of taxpayer books, records, and transactions to verify compliance with tax obligations. Both desk and field audits can be stressful and resource-intensive, with significant financial consequences if not managed properly. Our firm provides hands-on representation during all stages of tax audits, from initial notification through closing of the audit. We coordinate with auditors, manage document production, prepare technical memoranda on complex issues, craft legally grounded responses, advocate for our clients' positions in auditor interviews, and pursue administrative objections in hearings before the Audit Report Evaluation Commissions. We safeguard our clients against unfair assessments and ensure that all rights under Turkish tax audit procedure are properly exercised. Our proactive approach aims to avoid audit process pitfalls, narrow disputes, correct misunderstandings, minimize adjustment risks and lay the foundation for a defensible position should litigation arise.

iv. ADR Representation

Alternative Dispute Resolution (ADR) mechanisms under Turkish tax law offer taxpayers opportunities to resolve disputes efficiently without lengthy litigation. The Tax Procedure Law provides several ADR pathways, including reconciliation procedures for penalties—conducted with the Tax Inspection Board at the pre-assessment stage or with the Revenue Administration at the post-assessment stage—correction mechanisms that allow taxpayers to request rectification of errors from the tax office, complaint procedures to the Ministry of Finance when correction requests are rejected, and mutual agreement procedures under tax treaties to resolve international tax disputes involving double taxation. Our firm advises clients on the strategic use of these ADR mechanisms, evaluates settlement proposals, prepares negotiation strategies, develops persuasive legal and economic arguments to achieve favorable outcomes, and represents clients in reconciliation meetings with the Tax Inspection Board and Revenue Administration, as well as other ADR proceedings. We help clients assess when settlement is advantageous and secure outcomes that balance legal risk, business considerations, and cost-effectiveness.

v. Tax Litigation

When administrative remedies are exhausted or settlement is not achievable, litigation becomes necessary to protect taxpayers' rights. Turkish tax litigation involves multiple stages, including appeals before tax courts and potential escalation to regional administrative courts and the Council of State. Taxpayers can pursue litigation through two primary methods: directly contesting tax assessments and penalties, or alternatively, paying taxes under protest according to the Revenue Administration's interpretation and filing a lawsuit for refund. Our firm has extensive experience in tax litigation at all levels, representing clients in disputes involving assessments, penalties, refund claims, and procedural matters. Our litigators develop comprehensive litigation strategies, gather evidence, prepare detailed legal submissions, present oral arguments, and pursue cases through appellate review when necessary. We handle all phases of contentious proceedings—focusing on strategic case management and ensuring that every argument is supported by comprehensive legal and evidentiary analysis. When fundamental rights are at stake, we also pursue constitutional review before the Constitutional Court as a last resort. Our goal is to build compelling cases grounded in legal precedents, statutory interpretations, and factual analysis, and to achieve the most favorable judgment possible that protects our clients' financial interests and establishes beneficial precedents.

vi. Tax Crime Defense

Criminal tax offences under Turkish law carry serious consequences, including imprisonment of up to eight years and monetary penalties of three-fold the tax deficiency. Tax crimes include fraudulent accounting, double book-keeping, false invoicing, falsifying or hiding tax documents, and falsifying the records of electronic cash registers or other point-of-sale systems. These matters often involve parallel administrative and criminal procedures. Our firm provides robust defense representation for individuals and corporate officers facing tax crime investigations and prosecutions. We work closely with clients from the earliest stages—during dawn raids, interrogations, and evidence collection—to ensure procedural fairness and to construct a sound defense strategy. We manage interactions with criminal investigators, prepare defense strategies that address both criminal and administrative aspects, and represent clients throughout criminal proceedings to protect the personal liberty of officers and directors, and simultaneously safeguard the corporation's vital reputation and continued operational existence. Our approach integrates both substantive tax expertise and criminal procedural knowledge, allowing us to defend corporate officers and entities with professionalism and discretion.