Republic of Türkiye
Ministry of Treasury and Finance
Revenue Administration
TAX PROCEDURE LAW CIRCULAR / 118
Subject: Benefiting from hardship provisions for taxpayers who have submitted declarations/notifications in the event of the death of a professional or their close relative
Date: 15/10/2019
Number: VUK-118/2019-8
- Introduction
This Circular addresses the application of the hardship provisions stated in Article 17 of the Law No. 213 on Tax Procedure to taxpayers who have submitted declarations and notifications in the event of the death of a professional or their close relative.
- Legislation
According to Article 17 of the Law No. 213 titled “Extension of Time,” taxpayers who are unable to fulfill their tax-related duties within the legal period due to hardship can be granted an extension of time by the Ministry of Treasury and Finance. This extension can be up to one period of the legal duration, or if the legal duration is less than one month, not exceeding one month. To grant this extension:
- The request for an extension must be made in writing before the end of the period.
- The reason for the request must be deemed acceptable by the authority granting the extension.
- Granting the extension must not jeopardize the collection of the tax.
According to the third paragraph of the mentioned article, the Ministry of Treasury and Finance can delegate the authority to grant extensions wholly or partially to local offices, regions, provinces, districts, sectors, or taxpayer groups, and can use this authority without requiring written applications.
Furthermore, Article 257/1(4) of the same Law authorizes the Ministry to permit or mandate the submission of tax declarations and notifications through any electronic means, including the internet, using passwords, electronic signatures, or other security tools, and to have declarations and notifications sent via authorized individuals or entities.
According to the fourth paragraph of the same article, if the Ministry permits or mandates the submission of declarations and notifications through authorized individuals or entities, these electronic submissions will be considered as submitted by the taxpayer or tax responsible person, provided that a special agreement is made between the taxpayer or tax responsible person and the sender.
The procedures and principles for submitting declarations electronically have been defined in the General Communiqué No. 340 on the Tax Procedure Law, and various other General Communiqués provide further details on this. Taxpayers who meet the specified criteria are allowed to submit their declarations electronically using user codes, passwords, and PINs. Those who do not meet these criteria must submit their declarations through authorized individuals or entities using the contracts provided in the annex of the aforementioned Communiqué, in accordance with the explanations given. The rules for submitting declarations electronically also apply to notifications required to be sent electronically.
- Benefiting from Hardship Provisions in the Event of the Death of a Professional or Their Close Relative
In line with the regulations mentioned above, many taxpayers currently need to submit their declarations and notifications through authorized Certified Public Accountants, Certified Public Accountants and Financial Advisors, and Sworn Financial Advisors (professionals) under Law No. 3568. Declarations submitted through these professionals are considered as submitted by the taxpayers.
However, taxpayers submitting their declarations and notifications through a professional may not be informed of the professional’s death in time or may require additional time due to the burial process and other obligations related to the death. As a result, the deadlines for submitting declarations and notifications may be missed, leading to tax penalties.
In this regard, based on the authority granted by Article 17 of Law No. 213, if a professional or their close relative dies and the deadline for submitting declarations/notifications is 7 days or less from the date of death, the deadlines for submitting these declarations/notifications and the payment of the related taxes are extended by 7 days from the day following the original deadline.
The extension of declaration/notification and payment deadlines can be made ex officio by the tax offices if the above conditions are met, or upon written application by the concerned parties. If the tax office does not make the extension ex officio, the professional must prove and certify the death and date of death before or after the deadlines expire.
In the implementation of this Circular, the spouse and child of the professional, as well as the professional’s or their spouse’s parents and siblings, are considered close relatives.
Example 1: Mr. (A), a Certified Public Accountant from the Keçiören Tax Office in Ankara, passed away on 20.11.2019. As the deadline for VAT and preliminary tax declarations submitted by Mr. (A) was 26.11.2019, which was less than 7 days from the date of his death, 7 days will be added to 26.11.2019, extending the deadline to 03.12.2019. The declarations and the related taxes will be due by 03.12.2019.
Example 2: Ms. (B), a Certified Public Accountant from the Üsküdar Tax Office in Istanbul, had a sibling who passed away on 25.11.2019. Since the deadline for Ba-Bs notifications submitted by Ms. (B) was 02.12.2019, which was less than 7 days from the date of the sibling’s death, 7 days will be added to 02.12.2019, extending the deadline to 09.12.2019. The notifications will be due by 09.12.2019.
Example 3: Mr. (C), a Certified Public Accountant from the İslahiye Tax Office in Gaziantep, had a mother-in-law who passed away on 19.10.2019. As the deadline for VAT and preliminary tax declarations submitted by Mr. (C) was 28.10.2019, which was more than 7 days from the date of the mother-in-law’s death, the hardship provisions will not apply. The declarations and related taxes will be due by 28.10.2019.
Bekir BAYRAKDAR
Deputy Director of Revenue Administration
Source: Istanbul Chamber of Certified Public Accountants / Revenue Administration
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