According to the Sabah report, the İstanbul First Tax Court ruled against Doğan Yayın's subsidiaries, which had filed a case demanding a stay of execution of a demand by tax offices that a guarantee be given for the tax fine. The İstanbul Ninth Tax Court had ruled similarly, rejecting a challenge by Doğan Yayın against tax authorities' demand for a guarantee of the tax fine in early October. Doğan Yayın has filed an appeal of the Ninth Tax Court ruling and is currently awaiting the decision of the District Administrative Court.
In a written statement released last week through the Public Disclosure Platform (KAP) of the İstanbul Stock Exchange (İMKB), Doğan Yayın announced that its subsidiaries D Yapım Reklamcılık ve Dağıtım A.Ş. and Doğan Prodüksiyon Hizmetleri A.Ş., on which liens were placed by the Ministry of Finance after a guarantee for the TL 3.76 billion ($2.53 billion) tax fine raised by Doğan Yayın was rejected by the tax authorities, had appealed to the court for a stay of execution. Doğan Yayın said in the statement that if there was no agreement, the judicial process for the stay would continue from where it was. Doğan Yayın also announced last week that its subsidiaries have requested a settlement with tax authorities over the tax fine.
Doğan Yayın seeks new partners
Meanwhile, in a written statement to the İMKB released on Friday through KAP, Doğan Yayın announced that the company has launched an initiative to reorganize its ownership structure. The company said that it is seeking new partners to establish strategic partnerships with or to sell or transfer its shares either wholly or in part.
Doğan Yayın has been accused of violating the Radio and Television Supreme Council (RTÜK) Law in its sale of ownership shares to German publisher Axel Springer in 2006. RTÜK announced on Tuesday that Doğan Yayın has been given three months to fix irregularities in the ownership structures of institutions within the its media group.
A fine of TL 3.76 billion was levied on Doğan Yayın by the Finance Ministry in early September for evading taxes in a time period spanning 2005, 2006 and 2007. Turkey's tax office demanded on Sept. 24 that Doğan Yayın raise TL 4.8 billion ($3.24 billion) within 15 days as a guarantee for the fine. The guarantee is to cover the fine itself plus interest. The guarantee raised by Doğan on Oct. 9, the final day of the period, was not approved by the tax authority. The Finance Ministry put a lien on the holding's companies, and the relevant tax office has sent a notice to those companies. Doğan Yayın announced later that the bank accounts of some of its companies had been frozen. Doğan Yayın was separately fined $500 million in February for alleged improprieties connected to the sale of shares to Axel Springer.
