44 / 516
Even though the circulars legalized under the NTCC indicate that
the Communiqué nr. 2003/3 will be in force until the secondary legis-
lation based on NTCC is approved, since the expression under the
Communiqué nr. 2003/3 is contradictory to TPL, the capital increases
based on this expression should not be accepted.
Istanbul Tax Authority declared a similar opinion in its private rul-
ing dated 19.08.2011. According to this private ruling, the re-assess-
ment system was eliminated with the inflation correction provision
which was set forth under the reiterated article 298 of TPL by the Law
nr. 5024 and it is no longer possible to make a re-assessment other than
the inflation correction. Therefore, even the companies procure the re-
assessment of their immovable properties; these re-assessed values
cannot be accepted as values according to the tax procedure legislation.
In addition, the excessive values determined as per the re-assessment
can be recorded to the accounts solely for information purposes. On
the basis of the foregoing, the re-assessment funds or cost increase
funds are no longer accepted with the law as the funds that can be
added to the share capital; therefore it is no longer possible to add these
funds to the capital.
Accounting Principles and Provisions Regarding the Re-
assessment under New Turkish Commercial Code
The 5th Chapter of the NTCC under articles 64 et seq. regulates
the provisions on accounting principles, balance sheets and assess-
ment.
As per article 72 of the NTCC, in an enterprise; all assets, debts,
all costs paid and income received in cash; in technical words all term
defining accounts and all income and costs, are mandatory to be shown
as truly assessed.
The assessment provisions regarding the company assets are set
forth under articles 78-80. In general, the principles set forth under
Turkish Accounting Standards are applicable for the assets and debts
indicated in the financial statements. The values indicated in the clos-
ing balance sheet of the previous term should be equal to the values to
be indicated in the opening balance sheet of the term of activity. On the
closing date of the balance sheet, the assets and debts should separate-
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NEWSLETTER 2012