16 July 2010 /TODAY’S ZAMAN
İstanbul’s 3rd Tax Court has said it will make its final decision on Doğan Yayın Holding’s (DYH) appeal to overturn a recent TL 4.8 billion tax fine within the next two weeks, following the first hearing of the appeal on Wednesday.
Following findings by Finance Ministry inspectors that Doğan companies had concealed profits from share transfers among their partner companies and had avoided paying corporate tax on the revenues from those transfers, Doğan Holding, the parent company of Doğan Yayın was slapped with a TL 4.8 billion fine last year. Following this development, Doğan appealed to the court, demanding that the fine be overturned. Finance Ministry lawyers said the company did not transfer but sold shares to partner firms and that such an operation is subject to corporate tax according to the law. They said the company must pay the tax for the profits it made following the sale of shares. In their defense, Doğan’s lawyers argued that the company did not have to pay taxes for the operations in question, as they were transfers among company subsidiaries.