Tax Court’s Refusal to Charge Interest on the Administration’s Tax Refund Debt
The plaintiffs filed a lawsuit for the cancellation of the defendant administration transaction dated 21.06.2011 and numbered 61744 regarding the rejection of the application for correction and complaint regarding the value added tax calculated and paid over the price of the real estate they purchased from the Melikgazi Municipality through a tender, and for the refund of the paid tax with interest.
The last paragraph of Article 125 of the Constitution, which obliges the administration to pay the damages arising from its actions and transactions; It also includes the compensation of the damage arising from the inability of the relevant person to save the amount of money that must be returned in accordance with the judicial decision, during the period remaining at the disposal of the administration. The relationship between the tax administration and the claimant in terms of the amount required to be refunded has turned into a debt relationship, rather than a relationship between the administration and the claimant, since the refund has been ruled by a judicial decision. Therefore, since the debtor of this relationship must pay interest to the creditor by the debtor of this relationship for the period of time deprived of the disposition of the money; Since interest must be paid according to the provisions of the Law No. 3095 on Legal Interest and Default Interest, which regulates the rate of interest to be paid in cases where interest is required to be paid according to the Code of Obligations and the Commercial Code, the decision of the tax court; In accordance with the reasoning that there is no regulation in the tax laws and the Administrative Procedure Law No. 2577, the paragraph of the judgment regarding the rejection of the case in terms of the legal interest request had to be overturned (Council of State 3. Chamber – Decision: 2014/6339).
