TUSIAD released the following statement regarding the recent tax audit practices:

“TUSIAD is concerned by the recent practices of the tax authority, which seem to indicate that the taxation process is becoming increasingly influenced by political motivations. The levying of unprecedented amount of fines by a government agency that is supposed to be above politics substantiates our unease.

TUSIAD issued a press release on April 19, 2009 to communicate the widespread concerns in the business community about the ongoing tax audit practices at that time. This press release highlighted the increasing consensus that tax audits had recently been politicized; that the fines had been kept at extremely high levels; that taxpayers needed to be assured about the independence and equal and fair practices of the tax authority; and that it was crucial for the business community to guarantee the independence of the tax authority in order to address growing anxieties.

Not only are the recent tax practices incompatible with modern tax enforcement procedures, they have also reached a level that undermines freedom of press and the concept of plurality in a democracy. This, in turn, jeopardizes the significant progress Turkey made in the area of democratization over the last decade.

Practices that undermine taxpayers’ confidence in the system are unacceptable in any market economy and modern democracy. TUSIAD, considering that the current situation should be viewed as a practice going beyond tax audit and becoming a democracy issue, stresses its determination to watch over the process very closely.”