With the “Communiqué on the Procedures and Principles Regarding the Implementation of the Provisional Article 2 of the Law No. 7420 on the Amendment of Income Tax Law and Certain Laws and Decree Laws” (“Communiqué”) published in the Official Gazette dated 25.01.2023 and numbered 32084; 09. 11.2022 dated 09.11.2022 and numbered 32008 (“Communiqué”), the principles regarding the application area of the Provisional Article 2 of the Law No. 7420 on the Amendment of the Income Tax Law and Certain Laws and Decree Laws (“Law No. 7420”), which entered into force after being published in the Official Gazette dated 09.11.2022 and numbered 32008, have been determined.
In this information note (“Information Note”), the conditions for the acceptance of certain receivables subject to enforcement proceedings within the scope of “worthless receivables” according to the regulation in Article 322 of the Tax Procedure Law No. 213 (“Law No. 213”) with the entry into force of the Communiqué are included.
I. EXECUTIVE SUMMARY
The issues addressed in this Information Note can be summarized as follows:
With the Provisional Article 2 of Law No. 7420, the scope of the receivables recognized as worthless receivables according to Article 322 of Law No. 213 has been expanded. In this context, in enforcement proceedings initiated based on the Execution and Bankruptcy Law No. 2004 (“Law No. 2004”) and the Law No. 7155 on the Procedure for the Commencement of Proceedings Regarding Monetary Receivables Arising from Subscription Contracts (“Law No. 7155”), the debtors must be real persons, the amount of debt in the enforcement file or the amount of outstanding debt must exceed TL 2. 000,00-TL, and the creditor submits a waiver request to the enforcement file, the said receivables will also be accepted as worthless receivables.
With the Communiqué, the procedures and principles regarding the implementation of the Provisional Article 2 of the Law No. 7420 are determined and the procedures and principles by which the enforcement files that meet the conditions specified in the Provisional Article 2 will be closed are regulated.
In this context, first of all, the creditor is required to submit a petition containing the waiver request to the enforcement files, and then the enforcement office examines whether the enforcement file meets the conditions in the Provisional Article 2 of the Law No. 7420, and accordingly, the enforcement file is closed “without any waiver fee”. In the document to be issued by the enforcement office as a result of this file closing process, it is also mandatory to include a statement that the enforcement file is closed due to waiver pursuant to Provisional Article 2 of Law No. 7420.
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