Received a Tax/Penalty Notice? Reduction, Settlement or Lawsuit

Author: Att. Ahmet Bertuğ Dönmez Date: 3 July 20261 min read

If tax is assessed or a penalty imposed on you after a tax audit or determination, you are notified by a tax/penalty notice. The time limits running from notification are short, and the route you choose affects the others.

Three routes, the same 30 days

• Penalty reduction (Tax Procedure Law No. 213, Art. 376)
• Post-assessment settlement (Tax Procedure Law, Additional Art. 1)
• Lawsuit before the tax court (Administrative Procedure Law No. 2577, Art. 7)

Penalty reduction

If, within 30 days of notification, you apply to the tax office and state that you will pay the tax and the reduced penalty on time or provide the security required by law, the penalty is reduced at the rates set by law. If the reduced amount is not paid on time or a lawsuit is filed, the reduction is lost.

Post-assessment settlement

A settlement request is also made within 30 days of notification. If settlement is reached, no lawsuit can be filed for the agreed amount. If it is not reached and less than 15 days remain of the time limit to sue, or the limit has expired, a lawsuit can be filed within 15 days of notification of the record stating that no settlement was reached (Additional Art. 7).

Lawsuit before the tax court

The time limit to sue before the tax courts is 30 days (Law No. 2577, Art. 7). Filing a case before the tax court suspends the collection of the taxes and penalties in dispute (Art. 27/3).

Sources

• Tax Procedure Law No. 213, Art. 376, Additional Arts. 1, 7
• Administrative Procedure Law No. 2577, Arts. 7, 27