The Court Decided in Favor of Dogan Yayın Holding With Regard to the 862 Million TL Tax Fines Assessed Against the Company


The notices for the 862 million TL tax fines, assessed against Doğan Yayın Holding A.Ş., with the Tax Audit Reports, had been sent to our company on February 2009. The tax fine of 772.5 million TL, assessed pursuant to the sales of the 25% shares of the Doğan TV Holding A.Ş. to the Axel Springer Group in January 2007 constituted a significant portion of the fines, reaching 914 million TL, together with interest. 

The hearing of November 10, 2009, for the cases tried at the Istanbul 6th tax Court, was postponed, pursuant to the Tax Department’s recusation for the judges, on the grounds of fabricated news appearing in the press, and upon the supreme court not accepting the demand for recusation, the tribunal continued trying the case.
After the hearing held on January 22, 2010 for the relevant cases, the results were announced upon the judgments of the court, of January 29, 2010, being entered in the National Judiciary Informatics System (UYAP). Accordingly, the court did not deem legally valid, the claim of the Tax audit clerks that the sales of shares to the Axel Springer Group were effected in 2006, and decided to cancel the tax penalty for the 772.5 million TL portion. As for the other cases, the judgments were announced as “partially accepted and partially rejected”.  

Attorney Erem Yücel, who gave an explanation about the issue, said: “Following the court’s full decision being penned, we shall learn about the cancelled portion of the taxes for the cases other than the Axel share sales, both the Halkalı Tax Office and we are entitled to subject the judgment to appeal. The final say for the taxes and the fines constituting the case shall be up to the State Council; therefore, it would not be right to make any comments on the decisions of the Court, until such date. However, it is not possible any longer for the Tax Office to take any action for collections, collaterals or placing cautionary attachment with regards to the taxes cancelled. Since the first day, we had been saying that these tax fines were legally wrong; the Court’s decision thus confirmed that the allegations in the Tax Audit Report are legally not valid.”

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