EFFECTS OF COVID-19 PANDEMIC ON TAX LAW

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Many measures are taken to prevent and mitigate negative effects due to the Covid-19 (known as Corona in the society) pandemic, which affects the entire world and our country in an economic, social and negative way.

Undoubtedly, our economy, both individually and socially, is negatively affected in this process that we experience due to the Covid-19 pandemic.

The taxation activity defined as “monetary transmission made gratuitously and determinately from the private to the public sector, under the legal obligation, to defray public needs”[is one of the important factors affecting the economy and the arrangements made within the scope of the Covid-19 pandemic have also occurred in the field of Tax Law.

With the Tax Procedure Law Circular numbered VUK-125 / 2020-4, published in the Official Gazette on 17.03.2020, an announcement was made as follows: “The period of submission of Annual Income Tax declarations for the 2019 calendar year, which must be submitted by the end of March 31, 2020 and the the payment periods of the taxes accrued on these declarations was extended until the end of Thursday, April 30, 2020.”

Again, the announcement dated 24.03.2020 has been published by the Revenue Administration, in terms of performing tax duties of taxpayers, within the scope of the studies carried out to benefit from force majeure provisions.

Explanations regarding the sectors mentioned under the titles of “Retail”, “Trade and Shopping Centers”, “Iron Steel and Metal Industry, Automotive, Logistics – Transportation”, “Cinema and Theater Activities”, “Accommodation”, “Food and Beverage Services”, “Textile and Apparel Activities”, “Activitiy and Organization”, “Health Services”, “Furniture Manufacturing”, “Mining and Quarrying”, “Construction”, “Industrial Kitchen Equipments”, “Rent A Car”, “Printed Publication and Typography”, “All Income Taxpayers” and it is stated that the mentioned sectors are taxpayer groups that can benefit from force majeure situations.

Regarding the taxpayer groups mentioned in this direction; the regulations on force majeure situations are included by stating;

“In the General Communique prepared by our Ministry, period of submission of withholding tax and value-added tax declarations which must submit in April, May and June, of all taxpayers listed above was extended until the end of July 27, 2020.

The payment periods of the taxes accrued based on these declarations were extended by six months and payments were made within the last week of October, November and December.

On the other hand, in accordance with the circular issued by the Ministry of Interior; within the framework of the curfew application for citizens aged 65 and over and for those with chronic conditions; it was found appropriate by our Ministry to acceptance of the period between the date of the curfew begins and the date it will end, as a force majeure and to extend of the period of payment of the declarations to be submitted for this period and the taxes accrued accordingly to these until the end of the 15th day following the date of prohibition for taxpayers and professional members who cannot be on the streets due to the age of 65 or have a chronic illness.”

It is aimed to mitigate the negative effects of Covid-19 pandemic with the mentioned regulations.

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