The Finance Ministry slapped Doğan Yayın with a fine of TL 3.76 billion ($2.53 billion) for tax evasion during a time period covering 2005, 2006 and 2007. The guarantee is a combination of the fine itself plus interest on the fine, Doğan Yayın said in a statement on Friday. Shares in the company opened down 3.5 percent.
The units asked to put up the guarantee included Doğan TV Holding, D Yapım Reklamcılık, Doğan Prodüksiyon and Alp Görsel Communications. Doğan Yayın and the Finance Ministry had been set to meet on Wednesday to discuss the tax fine, but the company said it would now wait for written notice of the fine before deciding whether to have talks on a settlement or whether to pursue legal action. Doğan Yayın said on Friday it would use all legal means to appeal the tax office's ruling. The penalty for alleged failure to properly pay taxes for share transfers between Doğan companies is equivalent to the combined market value of Doğan Yayın and its parent, Doğan Holding. Doğan Yayın's annual sales are about $2 billion.
