{"id":6268,"date":"2023-10-10T23:08:36","date_gmt":"2023-10-10T20:08:36","guid":{"rendered":"https:\/\/gndolegal.com\/?page_id=6268"},"modified":"2023-10-10T23:22:50","modified_gmt":"2023-10-10T20:22:50","slug":"constitutional-court-decision-on-tax-safety-in-digital-service-tax","status":"publish","type":"page","link":"https:\/\/gndolegal.com\/en\/constitutional-court-decision-on-tax-safety-in-digital-service-tax\/","title":{"rendered":"Constitutional Court Decision on Tax Safety in Digital Service Tax"},"content":{"rendered":"\t\t
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\r\n Constitutional Court Decision on Tax Safety in Digital Service Tax <\/span>\r\n <\/h2>\r\n \r\n \r\n <\/div>\r\n <\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\r\n 13 September 2023<\/span>\r\n <\/h2>\r\n \r\n \r\n <\/div>\r\n <\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Constitutional Court Decision on Tax Safety in Digital Service Tax <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Summary: <\/strong>Article 7(2) of Law no. 7194 stipulates that access to the services offered by digital service providers would be blocked in case of their failure to fulfill their tax obligations. It was claimed that the rule was contrary to Articles 10, 13, 22 and 26 of the Constitution. In consequence of its norm evaluation, the Constitutional Court concluded that the article conflicted with the Constitution.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Our Explanations:<\/strong><\/p>

Contents of the Article Subject to Cancellation Request<\/strong><\/p>

Article 7(1) of the mentioned Law states that the digital service providers that fail to fulfill their obligations of submitting declarations and making payments for taxes under Tax Procedural Law in a timely manner, or their authorized representatives in T\u00fcrkiye, may be notified to fulfill such obligations by the tax office authorized to collect digital service tax through the notification methods, electronic mail or all other communication tools specified in Law no. 213 by using information from the contact details, domain name and IP address on their website or similar sources, and this situation is announced on the website of Revenue Administration. As stated in Article 7(2) of the Law, if such obligations are not fulfilled within thirty days after the notification, the Ministry of Treasury and Finance decides to block access to the services offered by such digital service providers, such decision is sent to the Information Technologies and Communication Agency to be notified to access providers, and implemented by access providers within twenty-four hours after the notification.<\/p>

\u00a0<\/p>

Constitutional Court Decision no.<\/strong> E.2020\/11, K.2023\/98 dated 18\/05\/2023<\/strong><\/p>

It was asserted that blocking access to the services offered by digital service providers in case of their failure to fulfill their obligations contradicted the principle of equality, that the decision of the Ministry of Treasury and Finance for blocking access to the services offered by digital service providers was a breach of freedom of communication because the justifications listed in the relevant Constitutional article and a duly accepted judicial decision are required to block communication, and that this was an intervention for the freedom of expressing and disseminating thoughts.<\/p>

The Constitutional Court reached the following conclusions in its evaluations based on Article 48 \u201cFreedom of Work and Contract\u201d of the Constitution, which states that \u201cEveryone has the freedom to work and conclude contracts in the field of his\/her choice. Establishment of private enterprises is free. The State shall take measures to ensure that private enterprises operate in accordance with national economic requirements and social objectives and in security and stability.\u201d <\/em><\/p>