This New legislation considered as ‘’a repentance law’’ raises as usual debates on a potential inequalities between taxpayers who paid their public debts and the others who profit by the advantages of new legislations on public debts. Whatever, restructuring public debts is part of the job of the Government in order to incite companies and taxpayers to pay properly their debts at first time and then to help them to continue their activities, investments; and hopefully a contribution to the national economy can be expected.
The law numbered 6552, concerning the restructuring of the Labor Law, some other Laws, statutory decree and specific debts is published in the Official Gazette on 11.09.2014 (publication number: 29116).
Some aspects of public debts need to be explained regarding the amendments to be applied very soon. Firstly, it would be important to clarify the enclosure of specified receivables mentioned in this restructuring (I). Another aspect concerning the margin accounts of the companies shall be stated (II).
I. Enclosure of specified receivables/public debts and the Administrations involved
1) In the Article 73 of the Bill, debts which would benefit from the restructuring are listed. Firstly, debts in relation with The Tax procedural Law number 213:
– Declaration based taxes dated before 30/4/2014 (this date included) and secondary like tax penalties, default interests, late fees (except the second instalment of income taxes in 2013).
– Accrued taxes dated before 30/4/2014 (this date included) and secondary like tax penalties, default interests, late fees (except accrued taxes for motor vehicle in 2014)
– Tax penalties dated before 30/4/2014 (this date included) not related to the basic tax to be paid: for example irregularity fines.
– Estate taxes and environment taxes with the secondary as tax penalties or default interests, if the due date was before 30/4/2014.
– Water and sewer water taxes to the Water and Sewerage administrations of Metropolitan Municipality if the due date was before 30/4/2014
– Administrative fines and traffic tickets dated before 30/4/2014 (this date included) related to highway law, military law, election law, supreme board of radio and TV.
2) Besides these, judicial and administrative fines which due dates are before 30/4/2014 under the Law numbered 6183 on collection procedure of assets.
In the restructuring there are the fines finalized and due or the unpaid part of the undue public debts with secondary like tax penalties, default interests and late fees.
Taxpayers shall apply for the restructuring until the end of November 2014 to the corresponding Tax office.
II. Companies duty in adjusting margin accounts, registration of debts and accounting
In the article 74 of the Bill, the margin account and registration debts and accounting are some aspects developed. It is a very important article especially for small and medium sized companies as they usually confuse company’s accounting with their personal account.
Under the new Legislation, taxpayers keeping their accounts on the balance sheet basis, if the balance on hand registered in their balance sheet is unavailable in the company and if there are some assets out of the area of activity of the company as of the date of 31/12/2013; these taxpayers shall declare until the end of December 2014 to the corresponding Tax Offices in order to restructure their public debts.
Accordingly, the amounts declared shall be subject to a tax at the rate of 3% and shall be paid in the period of declaration.
These amounts declared cannot neither be set-off from the income tax and the company tax and or considered as an expense in the tax assessment of the companies.