Values in the inflation difference account of liabilities
ARTICLE 54- (1) If the inflation difference accounts of passive items are transferred to another account or withdrawn from the entity in any way, they will be subject to tax in this period, without being associated with the earnings of the periods in which these transactions are made.
However, in the event that accounts such as advances, deposits, progress payments and fixed asset renewal fund, which can be closed by transferring to the accounts to which they are related due to their functioning, are closed, the inflation difference accounts belonging to them are not considered to be withdrawn from the business.
Pursuant to subparagraphs (5) and (7) of paragraph (A) of Article 298(A) of the duplicate Article of Law No. 213, inflation differences of equity items may be offset against prior year losses arising from the correction or may be added to the capital by corporate taxpayers; these transactions are not considered as profit distribution.
(2) While keeping books on the balance sheet basis, an income taxpayer who started to keep books on the business account basis within the framework of Article 180 of the Law No. 213, will not be considered as the withdrawal of the inflation differences from the business, since there is a change in bookkeeping arising from the provision of the law due to the transition to the business account basis.
Source: Communiqué No. 555 of the Tax Procedure Law
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