179 ARBITRATION LAW found a contradiction between these two decisions and annulled the arbitral award, but the Court of Cassation decided that the ruling of the Regional Court of Justice’s decision was incorrect as it found no contradiction.13 Violation of Turkish Tax Legislation The Court of Cassation recognizes tax legislation as a matter of public policy and states that these matters may be examined within the scope of public policy.14 The Decision of the General Assembly of Civil Chambers dated 08.02.201215 upheld the decision of the 13th Chamber16 that reversed the decision of the local court on the grounds that an investigation should be carried out as to whether the arbitral award violated Turkish tax laws, whether there were fraudulent practices for tax evasion, and whether there was a violation of public policy. The dissenting opinion regarded tax, a matter directly related to public policy, and stated that a situation contrary to the Turkish tax legislation within the arbitral award will violate public policy, and added that the case discussed in the decision of the Court of Cassation was not related to the tax to be paid to the state, but related to which of the parties should pay the accrued tax in accordance with the Turkish tax legislation and, therefore, it had no connection to public policy. Public Concession Agreements The doctrine provides that arbitral awards related to public concession agreements in which the award reduces the income received by the state and affects the economic structure may also be subject to public policy discussions. Failure by foreign arbitrators to inter13 The 15th CC of the Court of Cassation, No. 279/1042, 12.03.2020 (Information on the relevant decision was provided during the 16th ICC Turkish Arbitration Day held by the ICC on 17.03.2021). 14 The General Assembly of Civil Chambers, No. 1847/2020, 30.9.2015 (www.kazanci.com). 15 The General Assembly of Civil Chambers, No. 568/747, 08.02.2012, (www.kazanci.com). 16 The 13th CC of the Court of Cassation, No. 4018/15528, 29.12.2009.
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