FREQUENTLY QUESTIONS QUESTIONS

Concordat; “It is a coercive agreement made by an honest debtor with a certain majority of his creditors and becomes effective with the approval of the commercial court, whereby the creditors waive some of their receivables against the debtor and/or give the debtor a certain period of time to pay his debt, and within this period the debtor It is a legal institution that allows the person to get rid of all his debts by paying the accepted part of his debt.

What is the purpose of concordat?
It is to provide convenience to the debtor who has difficulty paying his debts, so that he can strengthen his financial situation, recover his business and continue his contributions to economic life. This convenience may be in the form of extending the maturity date, reducing the debt amount, or both.

What is the benefit of concordat?
Concordat is in favor of both the debtor and the creditors.

With concordat, the legislator gave the debtor in a difficult situation the opportunity to pay his debts within a reasonable period of time by making an agreement with the creditors.

With concordat, the debtor is relieved of the heavy burdens of bankruptcy and does not have to deal with foreclosure procedures.

In case of bankruptcy, creditors will line up and they may either not be able to collect their receivables at all or only a small portion of them. If they accept the concordat, they will collect their receivables in a higher amount since they will not have to bear the costs of foreclosure and bankruptcy.

From the society's perspective, the benefits include companies surviving bankruptcy continuing production, reducing unemployment and preventing economic contraction.

Who Can Declare Concordat?
“Any debtor who cannot pay his debts when they are due or who is in danger of not being able to pay them on maturity may request concordat in order to be able to pay his debts by granting maturity or reduction or to avoid a possible bankruptcy.”

• Both the debtor and the creditors can request concordat.
• All debtors whose financial situation has deteriorated can declare concordat.
• It is not necessary to be subject to bankruptcy.
• It does not matter whether it is a natural person or a legal entity. In an ordinary partnership, only partners can request concordat. Each of the affiliated companies included in the company group must request concordat separately.
• The important thing is to prove to creditors and the court that you can pay your debts if you are given time and/or some discount is given on your debts.

Value Added Tax is an expense tax collected from the sale of goods and services at every stage from production to consumption. The base of VAT is the added value, that is, the increase in value added to the product or service by the company as a result of its own activities.

Taxpayers pay VAT for the goods and services they receive, and this is called (VAT to be deducted). When selling goods and services, they collect VAT and this is called (Calculated VAT). If;

Collected VAT (Calculated VAT) > Paid VAT (VAT to be deducted) = State creditor (VAT to be paid)

Collected VAT (Calculated VAT) < Paid VAT (VAT to be deducted) = State owed (Calculated VAT)

Due to some transactions, the amount taxpayers will receive from the government (Transferred VAT) constantly increases. In a sense, this means that the capital that should be kept in the taxpayer's safe and used in his business is made available to the state, free of charge.

For example: A taxpayer who buys shirts from the market by paying 100 TL VAT and exports them without collecting VAT (exports are exempt from VAT) will have a VAT receivable of 100 TL from the state. This taxpayer's receivables from the government will increase with each export and he will lose his working capital over time.

We can say that VAT refunds are the process of collecting taxpayers' receivables from the government.

Who Can Receive VAT Refund?
In order to receive a VAT refund;

1- Being a VAT taxpayer,

2- Having a VAT receivable from the state (Transferred VAT)

3- The deferred VAT must be based on the following reasons.

• Deliveries and services within the scope of full exemption (such as export)
• Delivery and services subject to a discounted rate (such as construction work)
• Delivery and services subject to deduction (such as shuttle transportation)
• Excessive or inappropriately imposed taxes or
• It originates from international agreements.

What is Attestation?
It is the examination of real or legal persons or their enterprises and businesses by certified public accountants in terms of compliance with auditing principles and standards, and based on the results of this examination, determining whether the issues and documents within the scope of certification reflect the truth, using signatures and seals, and submitting a report.

What is Full Certification?
It is the certification of annual income or corporate tax returns and the financial statements and notifications attached to them.

What is the benefit of having full certification?
Those who have had full certification do not have to undergo additional certification in order to benefit from the following rights:

1- To benefit from R&D discount,

2- The minimum amount of 250,000 TL specified in Article 5 of the KVK;

• Foreign subsidiary earnings exemption,
• Exception for gains arising from the disposal of foreign subsidiary shares,
• Gain exemption from sales of immovable properties and participation shares,
• Foreign branch earnings exemption,
• Foreign construction and repair works earnings exemption,

3- Exception regarding the services provided to persons and institutions abroad, included in Article 89 of the GVK and Article 10 of the KVK,

4- Refund of up to 100,000 TL of the cash refund request for taxes withheld through withholding.

Is Full Certification Mandatory?
Since there is no obligation to receive full certification service, taxpayers can benefit from the full certification service if they wish.

However, in the annual tax inspection plans and programs of our Ministry, priority is given to examining taxpayers who do not have a full certification contract with certified public accountants.

Purpose of Full Certification:
A- By ensuring that the financial statements of real or legal persons or their enterprises and economic enterprises, showing the results of their accounts and records in terms of income or corporate tax declaration, are prepared in a complete and truthful manner, in a manner that is not misleading
to make available to the public,
B- To protect the rights and benefits of real or legal persons or their enterprises and businesses by ensuring promptness in meeting their demands in terms of relevant legislation,
C- To ensure trust prevails in tax administration and taxpayer relations,
Ç- To investigate and determine the accuracy of the income or corporate tax that needs to be paid or refunded or the earnings that need to be exempted.

Time of Full Certification Agreement:
Contracts regarding the certification of income and corporate tax returns and their annexes (full certification) are drawn up in January of the relevant year (within the first month of the special accounting period for taxpayers applying a special accounting period).

On the other hand, for taxpayers who have a full certification contract; There is no need to prepare a separate contract for income and corporate tax deductions and exemptions.

However, if taxpayers wish, it is possible to benefit from the full certification service by arranging a full certification contract after the due date.

In this case, the contract must cover the entire taxation period. However, in case a full certification agreement is drawn up after its due date, taxpayers will be subject to a penalty exceeding the determined "Monetary Limits".
It will not be possible to fulfill value added tax refund requests based on the certification reports of certified public accountants. In this case, the solution of the guarantee cannot be made with the report of a certified public accountant.

In addition, when preparing the value added tax refund certification report, the confirmation minutes and information response letters received from the sworn financial advisors of taxpayers who have not made a full certification agreement in time will not be taken into account.

In order to become a certified public accountant, it is necessary to have at least 10 years of professional experience (CPA, Tax Inspector, etc.) and to have completed the CPA exams conducted by TÜRMOB, which very few people can pass.

Certified public accountants ensure that the financial statements and declarations of real and legal persons or their enterprises and businesses comply with the legislative provisions, accounting principles and accounting standards, and
They certify that the accounts have been examined in accordance with auditing standards.

In accordance with the laws, certified financial statements given to public institutions and organizations are considered as a document that has been examined by the authorized officers of the public administration to the extent of the scope of certification. However, matters regarding the use of inspection and examination powers granted to the public administration by various laws and their repetition when necessary are reserved.

Sworn financial advisors are responsible for the accuracy of the certification they make.

If the certification they make is not correct, they will be jointly and severally liable with the taxpayer for the taxes lost and penalties to be imposed, limited to the scope of the certification.

You should ask the following questions to the company/person you plan to work with:
Will you personally carry out the inspections?
Certified Public Accountant is a profession of expertise and experience.

If the CPA does not personally participate in the audits, you may experience problems with the quality of service you receive.

You agree to receive the service of a specialist doctor, but the examination is performed by someone else.

At what intervals will inspections be carried out?
For a healthy audit, our recommendation is to carry out the audit on a monthly basis. Monthly auditing ensures that errors are identified in a short time and problems are resolved before they escalate. It is likely that there will be many disruptions in the mass inspections carried out at the end of the year.

Do you keep accounting?
Certified public accountants cannot keep accounting books, cannot open an accounting office, or become partners in accounting offices.

Some of our colleagues confuse taxpayers with sentences such as "Food is not delicious if it is not cooked in our kitchen, the CPA will handle your accounting..." However, sworn financial consultancy is an audit service. People often fail to realize the mistakes they make.

Do you have foreign partners?
Having a CPA's international partner is sometimes an advantage and sometimes a disadvantage.

This is a requirement if you have foreign partners and need to prepare a consolidated budget or present your financial statements to foreign companies.

However, since audit firms with foreign partners provide services to many taxpayers, you will generally deal with inexperienced auditors who are given a checklist. If there are not enough CPA in the company, unfortunately the quality of the work done will be very low. Although these companies employ competent people, reaching them is both difficult and costly.