The Finance Ministry is expected to object to the court’s decision and to file an appeal shortly.
In a written statement released through the Public Disclosure Platform (KAP) on Monday, Doğan Yayın said the court had ruled in favor of the company, which had demanded that the tax office’s fine be overturned. The Finance Ministry has the right to appeal to the court demanding that the decision to overturn part of the fine be annulled.
After a TL 862.4 million fine was levied on the holding by the Halkalı Tax Office last year, Doğan Yayın Holding appealed to the court, demanding that the fine be overturned. The tax office’s decision came in the wake of the discovery of illegal business practices and tax evasion for the fiscal years of 2002, 2003, 2004, 2005 and 2006 in February last year, following the Finance Ministry’s detailed investigations.
The company recalled in their statement that the court overturned a TL 115.3 million fine for alleged irregularities in the sale of a 25 percent stake in Doğan’s subsidiary Doğan TV to German publisher Axel Springer AG and a TL 657.2 million fine for alleged tax irregularities in the abovementioned years. Noting that the court has yet to reach a decision on the remaining part of the case, the company said they would share the result once it is released.
There were earlier claims that two Doğan Holding lawyers were trying to persuade officials at an İstanbul tax court that often hears Doğan-related cases to make sure that a specific, Doğan-friendly court would be appointed to their case. Following the claims, the Ministry of Justice had launched an investigation to remove some of the public servants at the court from their posts.
Meanwhile, following Doğan’s statement to KAP, the holding’s shares, traded on the İstanbul Stock Exchange (İMKB), enjoyed a remarkable increase at the end of Monday’s first session. Hürriyet Gazetecilik shares jumped by some 11.64 percent while shares of Doğan Gazetecilik A.Ş., Doğan Yayıncılık, Doğan Burada and Doğan Holding increased in value by 10.56, 10.53, 10.3 and 10 percent, respectively, at the benchmark.
