Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

LAW ON THE PROCEDURE FOR THE COLLECTION OF PUBLIC

VIEWS: 1 PAGES: 43

									B.1.2


LAW ON THE PROCEDURE FOR THE COLLECTION OF PUBLIC
RECEIVABLES (1)

Law number: 6183

Acceptance date: 21/07/1953

Date of the Official Gazette in which the Law was published: 28/07/1953

Official gazette number in which the Law was published: 8469

SECTION ONE: GENERAL PRINCIPLES

PART ONE: SCOPE OF THE LAW, TERMS, THE AUTHORIZED PERSONS

SCOPE OF THE LAW:

Article 1- The provisions of this law apply to principal public receivables such as taxes,
duties, charges, court fees for criminal investigations and procedures, tax penalties and
monetary penalties and to auxiliary public receivables such as delay fines and interest due
to the government, the private offices of the provinces and to municipalities and to other
receivables due to the same bodies from implementation of public services by the same
bodies other than those due under contract, tort or misappropriation and to the follow up
costs of the same.

The provisions of the Turkish Criminal Law regarding the collection of monetary
penalties and imprisonment are reserved.

RECEIVABLES THE COLLECTION OF WHICH IS WITHIN THE SCOPE OF THE
LAW ON COLLECTION OF ASSETS:

Article 2- The provisions of this law shall apply to all kinds of receivables the collection
of which is stated pursuant to various laws as being collected according to the Law on
Collection of Assets.

TERMS USED IN THE LAW:

Article 3- The term public receivable as used in this law: shall mean the receivables
within the scope of Articles 1 and 2,
The term public debtor or debtor shall mean: real or legal persons who are obliged to pay
the public receivable and their legal representatives or inheritors and tax payers, those
liable for taxes, guarantors and the representatives of foreign real or legal persons,

The term creditor public administration shall mean: the government, the private offices of
the provinces and municipalities,
The term collection office shall mean: the office, official for service of process or officers
of the creditor public administration authorized for the implementation of this law,

The term referred to solely as assets shall mean: Moveable and immoveable assets
‘including yachts’ and all kinds of rights and receivables,

The term monetary penalties shall mean: all monetary penalties be it of a public,
compensatory or disciplinary nature,

The term follow up costs shall mean: all costs such as costs for forceful actions,
announcements, seizures, transportation and safe keeping incurred during actions for
execution of enforcement procedures.

THE AUTHORIZED PERSONS AND THEIR OBLIGATIONS

Article 4- The duties of the officers of public administrations authorized to implement
this law are stipulated in the laws governing their organization and duties and all other
related laws or regulations or instructions and the obligations of such are stipulated in the
laws establishing such obligations.

COLLECTION OFFICE AUTHORIZED FOR FOLLOW UP:

Article 5- The follow up is done by the local collection office of the creditor public
administration.

If the debtor or its assets are in a different location, the follow up at such location shall be
effected through the collection offices at such location in the name of the subject matter
collection office.

COMPULSORY ASSISTANCE:

Article 6- The concerned persons are obliged to immediately comply with the service and
orders given by the collection office pursuant to this law and to inform the collection
office without delay of the results thereof.

In the event of non compliance with the above without a reasonable excuse, criminal
procedures are initiated directly by the Public Prosecutor according to general provisions
of law.

DEATH OF DEBTOR:
Article 7- In the event of the death of the debtor, the provisions of this law shall apply to
the inheritors of the debtor who have not refused their inheritance. Procedures which
have been initiated prior to the death of the debtor shall continue. Those cases where the
estate has to be liquidated by a court or a bankruptcy administration are outside the scope
of this provision.

In the event of the acceptance of the inheritance according to the books kept, the inheritor
shall be responsible for the public receivable in the same ratio as his/her inheritance share
even if the public debt is not recorded in the ledger for inheritance.

No sale can be effected during the continuation of the formalities for the keeping of the
ledger.

SERVICE OF NOTICES AND CALCULATION OF THE TIME PERIODS:

Article 8- In the absence of a provision to the contrary, the provisions of the Tax
Procedure Law shall apply to the calculation of the time periods and the service of
notices stipulated in this law.

PART TWO: PROTECTION OF PUBLIC RECEIVABLES

I- PROVISIONS GOVERNING GUARANTEES

REQUEST FOR GUARANTEE:

Article 9- (amended: 26/11/1980-2347/art.1) In the event of the commencement of the
necessary formalities required for the claim of a public receivable within the scope of
article 344 of the Tax Procedure Law governing the cases where a tax loss fine needs to
be applied and those circumstances within the scope of article 359, a guarantee is
requested by the collection offices over the amount stated by the tax officers authorized
for the tax investigation according to their first calculations.

If the situation of a public debtor not residing in Turkey shows that the public receivable
is endangered, the collection office may request a guarantee.

GUARANTEE AND EVALUATION THEREOF:

Article 10- The following are accepted as guarantee:

   1.   Money,
   2.   Letters of guarantee issued by banks,
   3.   Treasury bonds and debentures,
   4.   National stocks and bonds to be determined by the Government “Such stocks and
        bonds shall be valued at 15% lower than the closest stock market value for it to be
        considered as guarantee”
   5. (amended: 13/06/1963-251/ art. 1) Moveable and immoveable property provided
      by the persons concerned or which have been provided by third parties in favor of
      the persons concerned and which have been seized pursuant to an attachment
      order by the creditor public administration.

If at a later stage the guarantee losses its value in full or in part or if the amount of debt
increases, a request for the completing of the missing amount from the guarantee or its
replacement by another guarantee will be made.

The debtor may change its guarantee in part or in full with other guarantees of the same
value.

PERSONAL SURETY:

Article 11- Those persons who are unable to provide a guarantee in accordance with
article 10 may show a reputable person as several surety and joint and several debtor.

The personal surety shall be established by means of a notarized agreement in accordance
with conditions to be determined.

The acceptance of the personal surety and the person to give such personal surety is
within the authority of the creditor collection office.

The person providing the surety who has paid the public debt is given a certificate to such
effect.

GOODS WHICH MAY BE CONSIDERED AS GUARANTEE:

Article 12- The provisions of Articles 270 and 271 of the Execution and Bankruptcy Law
numbered 2004 being reserved, the goods and materials of bars, hotels, inns, places with
music, cinemas, places for dancing and playing, beerhouses, taverns and brothels will be
deemed as guarantees for the public debts arising from the operations of the said
enterprises.

The goods and materials which are recorded as fixed assets belonging to the owner of the
immoveable in a lease agreement certified by a notary public and the goods of the guests
and tenants of hotels, inns and small hotels will be outside the scope of this article.

The ownership claims of third parties under the Civil law number 688 and Code of
Obligations number 222 being reserved, ownership claims over goods in such places will
not violate the right of guarantee of the creditor public administration.

II. PRECAUTIONARY ATTACHMENT

PRECAUTIONARY ATTACHMENT:
Article 13- In the event of the existence of the below, a precautionary attachment may be
immediately applied in accordance with the provisions governing the application of such
attachment upon the decision of the most senior official of the creditor public
administration without being subject to any time limitation:

   1. If the events requiring the giving of a guarantee in accordance with article 9 exist,
   2. If the debtor does not have a fixed residence,
   3. If the debtor has run away or if there is a possibility of the debtor running away,
      or hiding his goods or resorting to fraudulent means,
   4. If the debtor has not provided a guarantee or a surety despite having been asked to
      do so or if the debtors offer to provide a personal surety has not been accepted or
      if the person who the debtor has shown as surety has not been accepted,
   5. If the debtor who has been requested to make a wealth declaration has not done so
      within the requested time period or has not made a complete declaration,
   6. If a public case has been initiated for any act necessitating the imposition of fine,
      irrespective of the granting of a final judgment,
   7. If there are circumstances which require the application of articles 27, 29 and 30
      of this law to the assets which form the subject matter of a transaction or
      disposition the cancellation of which is sought or if such assets have been
      disposed off which require the application of this law on the assets of the person
      who has so disposed.

GUARANTEE TO BE PROVIDED BY THE DEBTOR IN THE EVENT OF A
PRECAUTIONARY ATTACHMENT:

Article 14- Assets which have been attached under a precautionary attachment may be
released to the debtor upon the depositing of the value of the assets as guarantee or
providing a person with a residence in the same location as the collection office as surety
for their release in cash or in kind upon request and in the event of the assets having been
attached while in the possession of a third party to the third person upon the giving of an
undertaking deed.

OBJECTING TO A PRECAUTIONARY ATTACHMENT:

Article 15- Persons who have been subject to a precautionary injunction may object to the
cause of the precautionary injunction to the tax objection commission responsible for the
objections to be raised with the creditor collection office within 7 days of the application
of the precautionary injunction or in the event of a precautionary injunction order granted
in absentee, within 7 days from the receipt of the precautionary attachment order.

The provisions of the Tax procedure Law shall apply to the form of objection and its
review. The objection commissions are reviewed and resolved in conjunction with the
other matters. The decisions of the objection committees are final.

LIFTING OF THE PRECAUTIONARY ATTACHMENT:
Article 16- Other than for moveable goods within the scope of article 10, paragraph 5, in
the event of the debtor providing a guarantee in accordance with article 10, the
precautionary injunction is lifted by the office which has given the precautionary
injunction order.

III- PRECAUTIONARY ACCRUALS:

PRECAUTIONARY ACCRUAL:

Article 17- (amended 26/11/1980-2347/ art. 2) Upon the written request of the tax office
manager, the provincial treasurer may issue a written order for the immediate accrual of
those taxes and duties of the tax payer which are to be determined and published by the
Ministry of Finance together with their interest and penalties which have not yet accrued
in the event of the existence of any of the below.

The tax office manager shall immediately implement such order:

   1. If any of the causes for precautionary injunction as provided under article 13
      paragraphs 1,2,3 and 5 exist,
   2. If a follow up has been initiated against the tax payer pursuant to article 110,
   3. If there is evidence to the effect that the enterprise is collusive and in reality
      belongs to someone else.

THE RESULTS OF A PRECAUTIONARY ACCRUAL:

Article 18- The taxes, duties and penalties of the tax payer which are listed in article 17,
the taxable amount of which is known and which have been dealt with in accordance with
the said article will be immediately accrued over the amount calculated, irrespective of
whether an objection has been raised or not.

Taxes, duties and penalties which are listed in article 17 and the tax basis of which is not
yet known for the previous years and for the previous months of the current year shall be
calculated by an appraisal method temporarily and by applying a tax basis determined by
external evidence. Taxes, duties and their penalties and increases which have been so
determined will be immediately accrued.

Taxes and duties so accrued and their increases and penalties can not be collected prior to
their due dates as per the governing laws. However, a precautionary attachment shall be
immediately applied for such taxes and duties. In the event of those circumstances which
are within the scope of article 17, paragraph 3, the precautionary attachment is exercised
over the assets of those benefiting from the collusive enterprise for the purposes of taxes
and duties.

The temporary appraisals will be realized within at the latest one week from the date of a
request to such effect by the appraisal commissions.
CORRECTION OF THE PRECAUTIONARY ACCRUAL:

Article 19- Following the accrual of the receivable according to the special laws, the
difference between the precautionary accrual and the accrual as per the law shall be
corrected pursuant to the special law.

In order for such correction to be made, in the imposition of the tax pursuant to the tax
declaration, the tax declaration should have been reviewed and accepted, for impositions
of tax for which an objection has been raised the matter should have been finalized and in
cases where an application to the State Council has been made the final decision of the
State Council should have been rendered.

The review of the periodic declaration forming the subject matter of the precautionary
accrual within at the latest two months form its submission is compulsory. In the event a
review is not done within such period the correction can not be delayed for such reason.

OBJECTION TO THE PRECAUTIONARY ACCRUAL:

Article 20- Persons who have been subject to a precautionary attachment pursuant to a
precautionary accrual may object to the reasons for such precautionary accrual and the
amounts within the scope of article 15.

IV OTHER PROTECTION MEASURES


PRE EMPTIVE RIGHTS IN PUBLIC RECEIVABLES:

Article 21- If an attachment is put for a public receivable over assets attached by third
persons but prior to the liquidating of such assets, such receivable also participates in the
attachment and the liquidation proceeds are split pro rata.

The rights of secured creditors are reserved. However, public receivables arising from
customs duties, building and land taxes and other public receivables stemming from the
real rights over immoveable shall have priority over the secured creditor in its collection
for such goods or immoveable.

Public receivables shall be treated in accordance with the priority list pursuant to the
provisions of the Execution and Bankruptcy Law article 206 in the event of the
Bankruptcy of the debtor, refusal of the inheritance and the official liquidation of the
estate.

THOSE RESPONSIBLE FOR THE DEDUCTION AND PAYMENT OF THE PUBLIC
RECEIVABLE:

Article 22- In the event of real or legal persons who are obliged to deduct the public
receivable from the debtor and pay it to the collection office not doing so as provided for
in their laws or during the time periods provided in their laws, the public receivable shall
be collected from such real or legal persons as per the provisions of this law.

DEDUCTIONS DUE TO REFUSALS FROM PUBLIC RECEIVABLES WHICH
HAVE BEEN COLLECTED

Article 23- Those public receivables which have been collected but which need to be
refused for legal reasons, shall be refused by means of deduction of the debts of the
claimant due to the public administration which shall be refusing.

The parts of the refused amounts in the general budget belonging to the municipalities
and private administrations shall be determined and deducted from the amounts to be set
aside by the Treasury in the name and account of such administrations from their share
due during the year in which such amounts have been refused and deducted.

INITIATION OF CANCELLATION PROCEEDINGS:

Article 24- A law suit shall be filed in the public courts against the dispositions and
transactions of the public debtor within the scope of articles 27, 28, 29 and 30 and such
shall be subject to the general provisions of the law applicable to other transactions.

ADDRESSEE IN CANCELLATION PROCEDINGS

Article 25- Cancellation is requested against the debtor and those persons who have
engaged in legal transactions or those persons who have received payment from the
debtor, their inheritors and third parties acting in bad faith.

STATUTE OF LIMITATIONS FOR CANCELLATION

Article 26- Proceedings may not be initiated five years from the date of the occurrence of
the dispositions stipulated in Articles 27, 28, 29 and 30.

INVALIDITY OF DISPOSITIONS FOR NO CONSIDERATION

Article 27- Donations and dispositions for no consideration made within two years going
back from the date of payment or made after the date of payment by debtors who have
not paid their public debt and who have not made a wealth declaration during the time
period provided or who have not made a wealth declaration despite being pressurized by
means of imprisonment or who have stated that they do not have any wealth or whose
wealth is not sufficient to meet its debt, shall be null and void.

DISPOSITIONS WHICH SHALL BE CONSIDERED AS DONATIONS

Article 28- The below dispositions shall be considered as donations for the purposes of
the application of Article 27:
   1. dispositions for a consideration between blood relatives up to the third degree
      (including such degree), spouses and second degree (including such degree)
      relatives by marriage,
   2. contracts where the debtor has accepted a value for much less than the value at the
      time of the contract for its goods,
   3. contracts where the debtor has established a life time usufruct right with the right
      to proceeds in favor a third party or in debtors own favor.


OTHER DISPOSITIONS WHICH SHALL BE DEEMED NULL AND VOID

Article 29- Dispositions made within two years going back from the date of payment or
made after the date of payment by debtors who have not paid their public debt and who
have not made a wealth declaration during the time period provided or who have not
made a wealth declaration despite being pressurized by means of imprisonment or who
have stated that they do not have any wealth or whose wealth is not sufficient to meet its
debt, shall be null and void.

   1. with the exception of those instances where the debtor had undertaken to provide
      a guarantee, pledges given by debtor as security for an existing debt,
   2. payments made by means other than cash and other normally applied payment
      means for the repayment of a debt,
   3. payments for a debt which is not yet due.

DISPOSITIONS MADE WITH THE INTENTION OF PREVENTING THE
COLLECTION OF THE PUBLIC RECEIVABLE

Article 30- One sided transactions by the debtor with the intention of preventing the
collection of a part or the whole of the public receivable in the event the debtor does not
have assets or its assets are not sufficient and all transactions with persons who are aware
of the intentions of the debtor or who should have known the intentions of the debtor
shall be null and void irrespective of their dates.

RIGHTS AND OBLIGATIONS OF THIRD PARTIES

Article 31- Those persons who have benefited from the transactions and dispositions
stipulated in articles 27, 28, 29 and 30 are obliged to give their benefits and in the event
they have disposed of the same, the value of such benefits within the scope of the
provisions of this law. In return they can not make a claim from the creditor public
administration for what they have given.

THOSE CHARGED WITH THE DUTY OF FULFILLING THE LIQUIDATION

Article 32- In the liquidation of legal entities, the responsibilities for the payment of the
public receivables for which they are indebted and the implementation of the provisions
of this law belong to the liquidators, for partnerships which are not in the form of legal
entities and in the liquidation of the Turkish branches, agencies and representative offices
of foreign branches their responsibilities will pass to those responsible for the liquidation.



RESPONSIBILITY IN LIQUIDATION

Article 33- Liquidators or those responsible for the conducting of the liquidation are
under the obligation to inform the collection office of the commencement of the
liquidation within 3 days.

Liquidators or those responsible for the conducting of the liquidation may not distribute
the liquidation proceeds or make any kind of disposal on such proceeds prior to the
payment of all receivables of the public administrations or prior to setting such aside for
payment. Otherwise the liquidators or those responsible for the conducting of the
liquidation will be personally and severally liable. Such responsibility may not exceed the
value of the dispositions.

The right of recourse to those who have received proceeds from the said persons as debt
repayment prior to the payment of the public receivable is reserved.


REQUEST FOR THE LIQUIDATION OF THE PARTNERSHIP

Article 34- In the event there are no assets belonging to the debtor or such is not
sufficient to cover the public receivable or the guarantees required pursuant to this law
are not provided by the debtor or the partnership, the liquidation of the partnership may
be requested in accordance with the general provisions for the shares of the debtor in
partnerships the capital of which is not divided into shares for the collection of the public
receivable.

The provisions of this article will apply to the comandite shareholders of companies in
the form of ‘comandite’ companies the capital of which is divided into shares.


PUBLIC DEBTS OF LIMITED LIABLITY COMPANIES

Article 35- (amended: 22/07/1998-4369/21)

The shareholders of limited liability companies are directly responsible for public
receivables which may not be collected from the company in proportion to their capital
share and shall be subject to follow up as per the provisions of this law.


LIABILITY OF LEGAL REPRESENATATIVES
Repeated Article 35-(supplemental article 25/05/1995-4108/11)

Public receivables which can not be collected from legal entities, minors and those who
are incapacitated, and which can not be collected from organizations such as trusts and
congregations which do not have a legal identity shall be collected in accordance with
the provisions of this law.

The provisions of this article shall also apply to the representatives of foreign persons or
entities in Turkey.

The liability of legal representatives prior to the date of liquidation will not be lifted
because of the liquidation of legal entities or commencement of a liquidation process.

The representatives, those responsible for the management of the enterprise or
representatives may have the right of recourse for the amounts they have paid according
to this provision to the public debtor.

MERGERS, ACQUISITIONS AND CONVERSIONS

Article 36- (Amended article: 20/06/2001-law no 4684 article 24)

For the purposes of the application of this law, the below shall replace the legal entity
which has merged, been acquired, spun off or converted;

   a) new legal entity formed as a result of the merger of two or more legal entities
   b) the acquiring company in the event of an acquisition
   c) the legal entities acquiring the assets of the company which has been spun off in
      the event of a spin off
   d) the new legal entity in the event of a conversion

PART THREE: PAYMENT

TIME OF PAYMENT AND PRE PAYMENT

Article 37- Public receivables are paid at the times provided in the special laws governing
such public receivables.

Public receivables for which no payment period has been provided shall be paid within
one month from the date of notification to be made pursuant to the procedures to be
provided by the Ministry of Finance.

The last day of such payment period is the due date of the public receivable.

The public debtor may pay the debt prior to its due date, if it so wishes.

FAILURE TO PAY THE INSTALLMENTS ON THEIR DUE DATES
Article 38 (repealed article: 22/07/1998-4369/ art 82)

PLACE OF PAYMENT

Article 39- Public receivables, for which a place of payment has not been provided in the
laws governing such receivables, shall be paid to the collection office at the location of
the debtor’s residence.

Irrespective of whether a place of payment has been provided, payment may be made to
collection offices outside of the municipal borders of such place provided that the
account of the debtor with the creditor public administration is notified. Payments to be
made hereunder may not be made to tax collectors.

METHOD OF PAYMENT, INVOICES:

Article 40- Payments shall be made against invoices to be issued by the authorized and
responsible officers of the collection office.

(Additional provision: 25/12/2003-law no: 5035/ article 3) The Ministry of Finance is
authorized to provide for payments to be made by special methods. This authority; may
be used separately or collectively for the collection offices, the kind of public receivable,
time of payment and stage of payment.

Payments made without an invoice and payments made to persons other than to the
authorized and responsible officers will not be set off against the public receivable.

The form of invoices to be issued for public receivables shall be determined by the public
administration concerned.

Debtors are obliged to keep the invoices until the end of the statute of limitations
applicable for the collection of the public receivable and to show such invoices upon the
request of the authorized officers.

In cases where the invoice has to be sent by post to the debtor, the postal costs shall be
borne by the creditor public administration.

The provisions in special laws governing collections other than by issuance of invoices
are reserved.


SPECIAL PAYMENT METHODS:

Article 41- Those public receivables which are determined by the Ministry of Finance
may be paid through banks or post offices to be named by the said Ministry at the places
to be determined by the Ministry.
In the event the Ministry of Finance requires payment in this manner it is authorized to
determine the method of payment:

   1. by means of crossed cheque,
   2. by means of transfer from the tax payers account to the tax office account or
      central Bank account at the same bank,
   3. by means of payment to the accounts of the Central Bank and tax offices at banks
      where such have accounts,
   4. through post offices.
   5. (additional article: 30/07/2003 – law no. 4692/ art. 2) the time period for the
      transfer of the funds to the Central bank in the event of payments collected by
      banks by means of payments through bank cards, credit cards and similar cards or
      payments through the use of bank cards, credit cards and similar cards is
      maximum 7 days from the date of collection, in payments by credit cards a
      maximum of 20 days from the date of the transaction and the time period by
      which the payment through postal means should be received by the tax office is
      maximum 10 days from the date of payment (amended article: 24/03/1988 –
      3418/art. 34)

(amended provision:30/07/2003-law no: 4962/art. 2) The Ministry of Finance is
authorized to determine different time periods for certain receivables and/or banks
provided that the above time periods are not exceeded.

(amended provision: 24/03/1988-law no: 3418/art. 34) In the event of payments made by
means of bank cards, credit cards and similar cards not being transferred to the Central
bank within the time period provided and the payments through post offices not being
received by the tax offices within the time periods, the subject matter public receivable
shall be collected from the institution which had collected the payment with delay fines.
(4)

(amended provision: 24/03/1988-law no: 3418/art. 34) The branch managers of the
collecting banks or banks which have to make the payment due to the use of bank cards,
credit cards and similar cards are responsible for the timely transfer of the amounts
collected to the Central Bank and the post office or postal cheque center managers are
responsible to ensure the timely transfer to the tax office of the payments effected
through the post. (5)

(amended provision: 24/03/1988-law no: 3418/art. 34) A penalty in the amount of 10% of
the subject matter public receivable is collected from the responsible persons of the
institutions effecting the collection or which are responsible for the payment who did not
fulfill these obligations in due time. (6)

(amended provision: 30/07/2003-law no: 4962/art. 2) banks may charge a commission
from the public debtor in the payment of the public receivable by means of credit card.
The Ministry of Finance is authorized to provide that payment for the public receivable
should be made on a date which should be a date maximum 20 days in advance of the due
date (including such date) in order for commissions not to be paid for payments by means
of credit cards and to provide for the payment to be either by means of payment with or
without commission or both.

SPECIAL PROVISIONS FOR PAYMENT BY MEANS OF CHEQUE OR TRANSFER

Article 42- Payments by means of crossed cheque are subject to the terms of the Turkish
Commercial Law, however:

   1. the cheque for the payment of the public receivable should be issued in the name
      of the tax office concerned with a provision stating that it is not in bearer form
      and in the name of a bank. The Ministry of Finance is authorized to determine the
      information which needs to appear on the cheque in order to determine the
      receivable and provided that such is not contrary to the provisions of the Turkish
      Commercial Law.
   2. the right of recourse of the creditor public administration in the event of the
      cheque or transfer order or payments by means of bank cards, credit cards and
      similar cards not being made is reserved.

In the event of implementation according to paragraph 2 the non acceptance of the
cheque or transfer order shall be documented and such situation shall be notified to the
person requesting the transfer, to the drawer or to their representatives and the cheque
which has been refused shall be returned.

ISSUANCE DATE ON CHEQUES

Article 43- (amended article: 31/01/1984-law no: 2975/art. 2)

Cheques must be issued as of the date of submission to the collection office, post or bank
or at the most as of one day prior to such date. Cheques with an earlier date shall not be
accepted.

PAYMENT DATES FOR SPECIAL PAYMENT METHODS

Article 44- (amended provision: 25/05/1995- law no: 4108/art. 12) Payments made in
accordance with article 41 will deemed to be received on the day the cheque is submitted
to the collection office or the date it is submitted to the bank or the date the payment is
made to the bank or the post office where payments have been made by bankcards, credit
cards or similar cards the day the card transaction is effected and for transfer orders the
day the payment is received in the accounts of the collection office.

The 2nd paragraph of article 42 is reserved.

TAX BOOK
Article 45- (amended article: 31/01/1984- law no: 2975/art. 4)

A tax book is prepared for tax payers who are responsible for certain public receivables
such as taxes and duties to record the accruals for the public receivables accrued for such
tax payers and to record the collections made.

The Ministry of Finance and Customs is authorized to determine the price of the tax
book, the information it will contain, the conditions and methods of obtaining such tax
book, the taxes to which it will be applied, to whom it will be given and to determine the
period of application. The other public administrations may make changes to the form of
such tax book depending on the nature of their receivables and use.

The tax book is given to tax payers against payment of the price of such book.

All kinds of information in the tax book shall be recorded, signed and stamped by the
collection offices and information as to collection shall be recorded, signed and stamped
by the collection offices, banks or post offices.

The registrations made in the tax book by the collection offices, banks and post offices
shall be exempt from stamp tax.

EVIDENCE OF PAYMENT

Article 46 (amended provision 31/01/1984-law no: 2975/art. 5) the payment of the public
receivable may be proved by the invoices issued by the authorized and responsible
officers and by the records signed and stamped by the collection offices, banks and post
offices in the tax book.

The 2nd paragraph of article 42 is reserved.

RECEIVABLES FROM WHICH DEDUCTIONS SHALL BE MADE

Article 47- (amended article 22/07/1998- law no: 4369/art. 22)

Voluntary payments for a public debt, the payment term of which shall become due
earlier and which are not guaranteed or which are not sufficiently guaranteed shall be
deducted from and in proportion to; receivables the payment term of which has
commenced but which has not yet become due, receivables to which the statute of
limitations period will expire at the end of the same calendar year, the statute of
limitations of which will expire on the same date respectively. In the event the payment is
not sufficient for the principal and auxiliary amounts of the receivable the deduction shall
be made proportionately to the principal and auxiliary amounts of the receivable.

Moneys collected for the public receivable by execution proceedings shall firstly be
deducted pro rata to the principal and auxiliary amounts of the receivable due to the
office collecting the money and if there is any balance then it is deducted for the other
public administrations which have joined the follow up of the same public administration
pro rata to the principal and auxiliary amounts.

PART FOUR: POSTPONEMENT, DEFERRAL AND DELAY PENALTIES

POSTPONEMENT:

Article 48- (amended article: 30/05/1985- law no: 3209/art. 1) If the payment of the
public receivable on its due date or the enforcement of the attachment or the conversion
of assets which have been attached to cash will put the public debtor in a very difficult
situation, provided that a request has been made by the debtor in writing and a guarantee
has been provided, the taxes, duties, charges, and court costs as regards investigation and
imposition of fines, tax fines, monetary penalties and delay fines may be postponed for
two years, public receivables other than the said receivables may be postponed for no
longer than five years with interest by the creditor public administration or the offices
which such may authorize.

(additional provision: 31/01/1984-law no: 2975/art. 6) Provided that debtors, who have
requested the postponement of their debt however whose request has been refused, pay
their debts within the time period set by the administration which may be up to 30 days
from receipt of the notification of the refusal of the said debt the public receivable will be
postponed with interest.

The authorities exercising such right to postpone or delegating such right to postpone are
the relevant ministries in public receivables of the government, governors for public
receivables of special administrations of the provinces and mayors in the event of public
receivables of municipalities.

The guarantee should be in an amount to cover the principal and auxiliary debt. If an
attachment has been placed than the value of the attached assets shall be considered as
guarantee.

The installment dates and other conditions are determined by the office authorized to
postpone.

Non compliance with the conditions of postponement, failure to complete the value of the
guarantee or the attached assets or failure to provide others in lieu of such will result in
the public receivable becoming due.

(additional provision: 25/05/1995-law no:4108/art. 13) In the event the postponed
receivable is one of the kinds of receivables to which a delay fine is not imposed, the
postponement interest paid can not be reimbursed or deducted.

THE DEFFERAL OF THE EXECUTION BY THE DISTRICT OFFICES
Article 49- If a decision has been rendered by the district offices to defer execution for a
public receivable which has been postponed: in the event of the deferral period of the
district offices being less than the postponement period, the postponed receivable shall be
collected by means of installments during the period between the end of the deferral
period of the execution to the end of the postponement period together with the
receivable which was not paid on time due to the deferral of the district offices. If the
deferral period of the district offices is more than the postponement period, the earlier
postponement is null and void.

In the event of the follow up by the provincial offices exceeding the two year
postponement period than the postponement period may not be extended.

POSTPONEMENT OF THE FOLLOW UP IN THE EVENT OF DEATH

Article 50- Follow up of a debtor whose wife or husband or whose blood relative or lineal
relative by marriage has died shall be postponed for three days including the day of death.

In the event of the death of the debtor the follow up is postponed for three days including
the day of death for the debts of the estate. At the end of the three days the follow up
shall continue for the debts of the estate.

If the inheritance has not been accepted or refused by the inheritors, the follow up is
postponed for the time periods provided in the Civil Code for such circumstances.

DELAY FINES, RATIO AND ITS CALCULATION

Article 51- (amended article: 25/12/2003-law no: 5035/art. 4) {*}

A delay fine in the ratio of 4 % for each month of delay shall be applied from the due
date for the unpaid part of the public receivable. Delay fines for incomplete months will
be calculated on a daily basis.

The delay fine may not be more than one million lira.

Delay fines for tax loss fines applied according to the Tax Procedure Law number 213
shall be applied in the ratios provided in this article, for public receivables in the form of
fines imposed by courts delay fines shall be applied in an amount equal to half of such
ratio. Delay fines can not be imposed on public receivables which are in the form of fines
other than those provided herein.

The Council of Ministers is authorized to decrease the monthly delay fine up to 10%
collectively or individually for each month, to increase the minimum amount of the delay
fine ratio and the delay fine to twice its amount, to determine the delay fine in a different
ratio on a monthly basis and to have the delay fines calculated according to the
compounding interest method on a monthly, three monthly, six monthly or annual basis.
APPLICATION PERIOD IN DELAY FINES AND OTHER PROVISIONS

Article 52- (amended article 31/01/1984-2975/art. 8)

The application period for the delay fines for postponing of public receivables is the
period of postponement, for bankruptcy the commencement of the bankruptcy, for
insolvency the period until which the insolvency is definite.

The delay fine does not need to be notified to the debtor in advance.

The payment of the principal does not prevent the application of the delay fines and its
collection.

DELAY FINES IN VILLAGES

Article 53-(amended provision: 26/11/1980-law no: 2347/art. 5) Other than the taxes to
be determined and announced by the Ministry of Finance, a delay fine of only 10% is
applied to public receivables collected by treasurers in villages outside of the municipal
boundaries which are not paid on their due dates.

In villages where the treasurer has not been able to go to, this fine is imposed if the debt
is not paid at the first visit of the treasurer.

SECTION TWO: FORCEFUL COLLECTION OF THE PUBLIC RECEIVABLE

PART ONE: PRINCIPALS OF FORCEFUL COLLECTION AND FOLLOW UP

FORCEFUL COLLECTION AND ITS METHODS

Article 54- A public receivable which has not been paid within the payment period is
collected by force. Collection by force is implemented by one of the following ways:

1. Where the public debtor has given security to the collection office, by forfeiture and
liquidation of the security or by proceeding against the surety,
2. By seizure and liquidation of assets in an amount sufficient to cover the value of debt
of the public debtor,
3. By requesting the bankruptcy of the debtor if the requisite conditions are satisfied.

PAYMENT ORDER

Article 55- Those persons who have not paid a public receivable on its due date shall be
served with a ‘payment order’ notifying them to pay their debts within 7 days or to make
a wealth declaration.

The payment order states the nature and place of payment of the principal amount and
auxiliary amounts, that in the event the debt is not paid on the due date or in the event of
a failure to make a wealth declaration the debt will be collected by force and that there
will be the pressure of imprisonment not exceeding three months until the debtor makes a
wealth declaration, that in the event of a false declaration there will be punishment by
means of imprisonment. Additionally, the duties of the debtor under article 114 and the
penalties to be imposed for failure to comply with such duties will be notified in the said
payment order.

The debtors who are outside of the municipal boundaries will be served the payment
orders through the local village headman. In the event service is not made within 15 days
of the submission of the payment order to the village headman the names of the debtors
who have not been served the payment order shall be recorded on a ‘payment table’
which shall have the effect of a payment order and the debtors shall be called to pay their
debts and to make a wealth declaration. The payment table shall served by means of
being placed on the door of the village council together with one copy in a public place
where everyone can see for a period of 10 days and the fact that the payment table has
been so placed shall be announced by means of the person who is responsible in the
village for making oral public announcements. The placing and removal of the table is
minuted by the village headman. The forceful follow up shall be deemed to have
commenced from the date of the service of the payment order or from the date of the
removal of the payment table.

Third persons who hold assets belonging to debtors who have not paid their debts in due
time are requested to inform of such assets within 7 days.

FOLLOW UP IN GUARANTEED RECEIVABLES

Article 56- In the event of a public receivable for which a guarantee has been given not
being paid on its due date, the debtor is notified to pay within 7 days, if not the debtor is
notified that the guarantee will be converted to cash or that the forceful collection will
continue. In the event the debt is not paid within 7 days the guarantee shall be cashed in
accordance with the provisions of this law and the public receivable shall be collected.

FOLLOW UP OF THE SURETY AND AGENTS OF FOREIGN PERSONS OR
ENTITIES

Article 57- Persons who have given a surety and agents of foreign persons or entities
shall be subject to follow up in accordance with the provisions of this law and with the
same procedures as the principal debtor.

OBJECTION TO THE PAYMENT ORDER

Article 58- The person who has been served with a payment order may object to the tax
objection commission responsible for the objections to be made to the collection office
within 7 days of service on the grounds that it has no such debt, or that such debt has
been paid in part or that such debt is no longer recoverable due to the statute of
limitations. The provisions of the Tax Procedure Law shall apply to the method of
objection, its review and rejection.

The debtor objecting to part of the receivable has to openly show the amount and reason,
otherwise the objection will be deemed not to have been made.

In the event the objecting debtor puts up a guarantee in accordance with the provisions of
this law the follow up shall stop for the objected amount of the debt and until the decision
of the objection commission.

The objection commission is obliged to tae a decision on such objections at the latest
within 7 days.

The objected part of the receivable will be collected with a 10% mark up from debtors
whose objection is not accepted in part or in full.

The decisions of the objection commissions on such matters are final.

In the event of the rejection of the objections in full or in part to the full amount of the
debt, the debtor is obliged to make a declaration of wealth within 7 days of the
notification of the decision to it.

Objections made for part of the debt in accordance with the provisions of this article does
not extend the period for making the wealth declaration.

WEALTH DECLARATION

Article 59- A Wealth declaration is the written or oral declaration by the debtor to the
collection office of the kind, nature, quality and value of assets, receivables and rights
which debtor has in its own possession or which are in the possession of third parties and
of all revenues derived there from which will be sufficient to meet the debts of the debtor
or the declaration by the debtor that it does not have any assets or revenues that may be
seized and the declaration of the debtor’s means of living according to his life style and
how he will be able to pay his debt according thereto.

(Amended paragraph: 26/11/1980-2347/art. 6) Wealth declaration in villages for public
debts, excluding those taxes that will be determined and announced by the Ministry of
Finance, may be made to the head of the village.

In case of an oral declaration, the declaration is recorded in minutes. In both cases, a
receipt without stamp is given to the public debtor to the effect that the declaration has
been made.

PERSONS WHO HAVE NOT MADE A WEALTH DECLARATION

Article 60- (amended article: 13/06/1963-law no: 251/art. 2)
The debtor who has been served a payment order, shall be pressurized by imprisonment if
the debt has not been paid within 7 days and if a wealth declaration has not been made
provided that such shall not exceed three months and it shall be limited to one time.

The decision to pressurize by imprisonment shall be given by the enforcement court
judge following the expiry of the 7 day period and the service of the payment order.

These decisions shall be immediately implemented by the public prosecutor.

The decision to pressurize by imprisonment of the enforcement court judge is exempt
from all kinds of charges and duties.

ACQUIRING ASSETS AND INCREASE OF ASSETS

Article 61- The debtor who has declared in his wealth declaration that he has no assets or
who has not shown sufficient assets to cover its debts, has to inform the collection office
of assets acquired at a later stage and increases in income within 15 days of such
acquisition or increase.


ATTACHMENT

Article 62- Movable and immovable assets, receivables and other vested interests of the
public debtor held by the public debtor or by third parties, which have been declared in
the wealth declaration or determined by the collection office, are seized to the value of
the public debt.

The attachment of assets which have been declared by the debtor as belonging to another
or which have been subject to a precautionary attachment by a third person or on which a
claim has been raised shall be left till last.

However, if the debtor can show sufficient assets or strong receivables which have
become due adequate to pay the debt the assets or receivable is attached prior to the sale
of the attached immovable with the attachment over the immovable continuing.

It being understood that, the collection office may not interfere with the administration
and operations, income and rights of the attached immovable.

The collection office is responsible to reconcile the rights of the public administration
and debtor to the extent possible.

CONVERSION OF OTHER RIGHTS TO CASH:

Article 63- The collection office shall, by using all rights of the debtor for the purposes of
liquidation ensure the conversion of the assets into cash within the general provisions of
the law as if such were a usu fruct right or an undivided inheritance right. The provisions
of this law shall apply to assets which shall thus become convertible to cash.

ATTACHMENT CERTIFICATE

Article 64- (amended provision: 25/05/1995-4108/art. 14) Attachment procedures are
implemented based on attachment certificates prepared by collection offices and certified
by the most senior local officer of the creditor public administration or an officer which
shall be appointed by the said person.

The form and detail which such certificate shall contain shall be determined by the
Ministry of Finance.

ATTACHMENT IN VILLAGES:

Article 65- Attachment of moveable assets is implemented by the village council in
villages and in places where the Village Law is applied upon an attachment certificate.

(amended provision: 26/11/1980-2347/art. 7) The most senior officer for the area is
authorized to attach moveable assets for the taxes determined by the Ministry of Finance
where it is deemed necessary in such places with the presence of the village head or one
of the members of the village council.

CLAIMS FOR ATTACHED ASSETS WHICH WERE IN THE POSSESION OF THE
DEBTOR

Article 66- In the case the debtor shows an asset in its possession as the asset belonging
to a third party or as an asset pledged in favour of a third party or in the case a right of
ownership or pledge is claimed by a third party on the said asset, such claims are
recorded on the seizure record by the seizure officer. The claim is notified to the third
party, in case the claim is made by the debtor, and to the debtor, in case the claim is made
by the third party.
If the collection office does not object to the claim within 7 days of receipt of the seizure
record, the third party claim for recovery is deemed to have been accepted by the
collection office. If the third party does not object within 7 days of the date of
notification, the third party claim for recovery is not heard.

If the third party recovery claim is not accepted by the collection office or the debtor
objects to the third party claims, the collection office notifies the third party of the
requirement of application to the court within 7 days of the notification. If the court case
is not filed within the requisite time period, the third party claim is deemed to be waived.


CLAIMS FOR ASSETS ATTACHED IN THE POSSESION OF THIRD PARTIES
Article 67-If the assets attached are not in the possession of the debtor but is in the
possession of a third party claiming ownership or a right of pledge over such asset the
issue is recorded in the minutes of the attachment of the officer in charge of the
attachment procedures. The collection office claiming that the asset belongs to the debtor
will inform the creditor public administration of such matter. If the creditor public
administration does not initiate a law suit within 15 days of notification than the claim
will be deemed to have been accepted.

If persons residing with the debtor make a claim the assets will be deemed to be in the
possession of the debtor.

OTHER PROVISIONS RELATING TO CLAIMS

Article 68- The court at the location of the collection office implementing the attachment
has jurisdiction over ownership claims. Cases for claims are conducted with priority to
other matters.

The court may decide for the postponement of the follow up depending on the evidence
of the plaintiff and provided that sufficient guarantee is obtained for the probable
damages.

If the court decides for postponement of the follow up and if finally the case is rejected,
compensation in the amount of 10% of the assets forming the subject matter of the court
case shall be awarded.

JOINING IN THE ATTACHMENT BETWEEN THE PUBLIC ADMINISTRATIONS

Article 69- Each public administration, may join the attachments by another public
administration provided that the public receivable has arisen prior to the attachment date
until any one of the attached assets is converted to cash.

In the event of joining the attachment, firstly the receivable of the office realizing the
attachment will be collected from the value of the attached asset. The remainder shall be
paid to the administrations which have joined the attachment proceedings according to
the dates of joining the attachment for deduction from their receivables.

ASSETS WHICH MAY NOT BE ATTACHED

Article 70- The below listed assets may not be attached:

1. (Amended: 04/05/1994-3986/art. 16) Except for the assets of state economic
   organizations, state economic enterprises, their institutions, affiliated partnerships,
   participations and local administrations subject to the provisions of the Decree with
   the force of law on State Economic Enterprises numbered 233, Government assets
   and assets which are immune from attachment according to the special laws
   governing such assets.
2. Clothing and goods necessary for the personal needs of the debtor and his profession,
   beddings necessary for the debtor and his family and books and goods used for
   religious purposes,

3. Kitchenware which can not be done without and household goods which are
   absolutely necessary,

4. In the event the debtor is a farmer, the land, farm animals, vehicles and other
   appurtenances and farming equipment which are necessary for the maintenance of the
   debtor and his family; if the debtor is not a farmer the books, utensils and tools
   necessary for the debtors art and profession; the transportation vehicles of drivers,
   boatman or porter used solely for their living,

5. If necessary for the living of the debtor and his family, a milking cow or buffalo of
   the debtors choice or three goats or sheep and the feed and bedding of such for three
   months,

6. Two months food and fuel for the debtor and his family together with;

       (a) seeds for the forthcoming crop if the debtor is a farmer,
       (b) orchard, garden or tools and equipment required for such, materials and seeds
           and nursing plants which are necessary for the living of the debtor and his
           family in the event the debtor is an orchard, garden or fruit and vegetable
           grower,
       (c) a sufficient number of animals and the three monthly feed and bedding of
           such animals of debtors whose living is solely on animal breeding

7. monthly pension payments paid to persons who have become disabled in the armed
   forces or police force of the country, and the monthly payments to the spouses or
   orphans of such and flight and diving premiums given to members of the air force or
   submarine forces,

8. monthly payments given by a charitable institution or trust for illness, extreme
   poverty or death,

9. monies given to a person who has incurred damages or his family for damages to
   health or physical damages,

10. war disability payments and the sale portion left to the seller on the valuable papers of
    the Tobacco, Tobacco Products, Salt and Alcohol Enterprises Inc. (“TEKEL”)
    according to law number 1485 to persons who have become disabled in the military,
    orphans of martyrs,
11. appropriate housing for the debtor “however, if the value of the house is high the
    house may be sold after being attached provided that a sufficient amount for a
    suitable housing for the debtor is left to the debtor”,

12. (amended paragraph: 26/11/1980-2347/art. 8) Payments according to the law on
    charges,

13. (additional paragraph: 26/11/1980-2347/art. 8) Monthly payments according to law
   number 2022.

INCOME WHICH MAY BE PARTLY ATTACHED

Article 71- (amended article: 26/11/1980-2347/art. 9)

Monthly pensions, payments, all kinds of salaries, usu fruct rights and proceeds,
alimonies which are not by court decision, retirement salaries, income from insurance and
retirement funds may be attached in part. However the amount to be attached may not be
more than one third and less than one fourth.

For minimum salaries it is not possible to attach more than one tenth of the monthly
income.

ATTACHEMENT OF CROP WHICH ARE NOT YET RIPE

Article 72- All kinds of crop from land or trees which are not ripe, may be attached two
months prior to the time in which they will become ripe. The transfer of such which have
been so attached to others shall be null and void towards the collection office and shall
not prevent the follow up.

This provision does not remove the right of the creditor to the crop from land which is
not yet ripe whose right is secured by an immoveable pledge. Provided however that, the
creditor should have made a claim for follow up for the conversion of the pledge to cash,
prior to such becoming ripe.

RESULTS OF THE ATTACHMENT:

Article 73- The debtor may not make any disposals on the attached assets without the
permission of the creditor public administration. The collection office which has imposed
the attachment notifies the debtor that actions to the contrary will be subject to penalties.

The rights acquired by bona fide third parties on the attached assets pursuant to the
provisions governing possession are reserved.

The rights acquired by third parties contrary to the principles of good faith shall be
nullified by the court to the extent such infringe the rights of the subject matter asset.
CONVERTING INTO CASH

Article 74- All kinds of assets that have been ceased are liquidated by means of a sale.

The amount remaining after the costs of the execution procedure and the amount of the
subject matter public debt have been deducted from the amount recovered as a result of
the sale is set off against the debts of the debtor the payment of which have become due
or mature and in case there is no other office that has participated to the seizure, the
surplus is given to the debtor, in case there is another office that has participated to the
seizure, out of the surplus, the receivables of such office is firstly set aside and the
remaining amount is given to the debtor.

In case its is definitely known that the amount to be recovered from the sale shall not be
more than the debts that have to be paid before the payment of the public debt and the
cost of the execution proceedings, the collection office may postpone the sale of the
property which has been seized. Provided however that, the right of initiation of
execution proceedings of those whose receivables rank in priority to the receivables of
the public administration, is reserved.


INSOLVENCY

Article 75- If at the end of the follow up the debtor has not attachable assets or the sales
value of the debtors assets are not sufficient to meet its debts, the debtor is deemed to be
insolvent.

The insolvency is declared by means of the follow up steps and the amount of the
remaining debt being recorded in an insolvency certificate.

RESULTS OF INSOLVENCY

Article 76- The provisions of article 48 may be applied as regards the insolvent debtor
without seeking guarantees and applying interest.

The creditor public administration follows up the financial situation of the insolvent
debtor throughout the statute of limitations period.

PART TWO: ATTACHMENT OF MOVABLE ASSETS AND THEIR SALE

ATTACHMENT OF MOVABLE ASSETS

Article 77-All kinds of movable assets can be attached by means of their kind and nature,
characteristics, signs, number and amounts and value being determined in the minutes of
the attachment.
THOSE WHO NEED TO BE PRESENT DURING ATTACHMENT AND THE
MINUTES OF ATTACHMENT

Article 78- The debtor or person in possession of the assets or their attorneys, employees,
servants or one of their family members as the representative of the debtor should be
present during attachment proceedings. If such are not present at the place of attachment
or if their presence can not be arranged at the time of attachment then the attachment is
done in their absence. In attachment procedures in the absence of the above said persons
the police officer or the village head or one of the members of the village councilor two
of the neighbors of the debtor or the neighbors of the person in possession of assets
belonging to debtor.

In the minutes of attachment, the date and number of the attachment certificate, the place,
date and time of the attachment, the estimated values, those present during the attachment
procedure, claims of third parties, if any, and other necessary information shall be
recorded and the minutes shall be signed by those present and the attachment formalities
shall be finalized.

A copy of the attachment minutes for attachment procedures done in absentee is
immediately served to the debtor or the person in possession of the assets of debtor.

Attachment procedures can not be conducted from sunset to sunrise and on holidays.
Attachment procedures of income of places which work on holidays or in the evenings
and instances where it is determined that the debtor is hiding his assets are exempt from
this provision.

ATTACHMENT OF MOVABLE ASSETS, RECEIVABLES AND RIGHTS IN THE
POSSESION OF THIRD PARTIES

Article 79- The attachment of receivables which are not based on a promissory note
which is in bearer form or which are not endorsable, salaries, fees, and rent income rights
and all such other rights and movable assets in the possession of third parties the
attachment of which by means of attachment minutes is not possible, is realized by means
of the service of the attachment to the debtor or on the real and legal persons or
institutions in possession of such assets or those who are responsible for the payment of
the receivable and rights.

If the receivable of the debtor or its assets in the possession of a third party is attached
and the third party has a claim to the effect that it has no such debt or the assets do not
exist at such location or that the debt has been paid prior to the receipt of the attachment
order or that the assets have been subject to condemnation or have been destroyed
through no fault of the third party or that the receivable has been given to the debtor or to
a place of his order, then such third party is under the obligation to inform the collection
office of this situation within 7 days of receipt of the attachment order with a written
declaration. In the event of failure to so inform it will be assumed that the assets and debt
are in his possession and the provisions of this law will apply.
Where it is not possible to deliver the movable assets as is the value is paid. The rights of
recourse of third parties in accordance with the general provisions of law to the principal
debtor are reserved.

USE OF FORCE

Article 80- In the implementation of the attachment it is obligatory to disclose all kinds of
goods and open all locked and closed spaces.

If need be such places can be opened by means of force, locks and all other closures can
be broken. All sorts of force as the situation may require for the forceful taking of the
attached assets may be used.

In the event the debtor has valuable assets in his possession and the debtor does not
voluntarily release or carries such on himself, force may be used on his person.

VALUATION FOR ATTACHMENT

Article 81- The assets which are attached are valued by the officer implementing the
attachment, upon the application of the debtor or if it is deemed necessary by the
collection office the assets are reevaluated by an expert.

PROTECTION OF THE MOVEABLE ASSETS WHICH HAVE BEEN ATTACHED

Article 82- Monies, precious metals, jewelry, commercial notes, share certificates and
other movable assets such as bonds, are preserved by the collection office by taking the
appropriate measures to prevent their loss and exchange.

Other moveable assets are kept in safe keeping in a suitable place or are left to a
trustworthy person or to the debtor under the surety of a trustworthy person or to the
person in possession of such assets.

OBLIGATIONS AND RESPONSIBILTIES OF PERSONS WHO WILL BE
PROTECTING THE MOVABLE ASSETS:

Article 83 – Debtors, persons in possession of the assets, trusted persons are obliged to
give back the assets in the same condition as such was handed over to them immediately
upon the first request of the collection office.

In addition to criminal prosecution which will be initiated against those who do not
comply with such obligation, such persons will be deemed to be indebted for the amount
of the value of the assets which have not been returned and shall be subject to follow up
as per the provisions of this law if they are unable to prove that the assets were destroyed
or lost for reasons not attributable to them.
SALE OF MOVABLE ASSETS

Article 84- Movable assets are put up for sale within three months after the third day of
the date of seizure by the collection offices, or, in villages, by the village council.

Movable assets which are either impossible to preserve due to spoiling or rotting or for
other similar reasons, or, those which may be subject to a significant depreciation in
value, may be liquidated immediately.

METHOD OF SALE, INCREASES AND ANNOUNCEMENTS

Article 85- (amended article: 22/07/1998-4369/art. 23) Moveable assets are sold by
means of public auction and against payment in advance at the sales location of the
collection office. In the event it is deemed suitable by the collection office the auction
may take place at the location of the movable. Assets which are tendered for sale by
means of auction is tendered to the highest bidder after having been announced three
times loudly. Assets which can not be preserved due to the risk of going bad, perishing or
for other similar reasons or the value of which will diminish significantly with passing of
time, can be sold at the most appropriate place by means of bargaining or at the stock
exchange for assets which are traded on a stock exchange. The auction for assets which
can not be sold during the first auction process may be sold in another province.

Where necessary the place, date and time and the nature and characteristics of the assets
can be announced in advance.

The form of announcement, the method of bidding, the date and place is determined by
the collection office by taking into account the most suitable form for the benefit of the
debtor and the collection office.

The assets sold will not be delivered until the payment of the value for such assets. The
collection office may give three days following the day of the tender of the assets for
payment.

In the event the public receivable is covered by the sale of part of the assets the remaining
assets are not sold and the attachment on such is lifted.

WITHDRAWAL FROM THE PURCHASE OF THE ASSETS BY THE CUSTOMER

Article 86- If the customers withdraws from purchasing the asset or does not pay for the
full value within the given time period, the assets are auction for a second time and is
sold to the highest bidder. The difference between the two auctions and other damages
and 5% interest or if the second auction can not be realized due to lack of bidders the
value of the first auction and other damages and 5% interest shall be collected from the
person who had originally won the bidding without the need for a decision to such effect
in accordance with the provisions of this law and the assets shall be left to such person
after deduction of all kinds of costs incurred by the administration. For as long as the
value of the assets can not be collected from the person who has won the bidding the debt
of the principal debtor continues.

MOVABLE ASSETS WHICH CAN NOT BE SOLD

Article 87- If the price tendered for the assets is less than 75% of the value determined
according to article 81 for the attached assets or if there is no buyer, the assets are re
tendered for sale within 15 days of the first auction date. The sale is realized no matter
what the price in the second auction.

If the movable assets are not sold at their location or if they are transported to another
place, at such other place or if due to the costs of transportation moving such assets to
another place does not seem suitable the assets are sold within 6 months from the expiry
of the 15 days stated above by means of bargaining. In the event the assets are not sold in
this manner than they are given back to the debtor.

PART THREE: ATTACHMENT OF IMMOVABLE PROPERTY AND THEIR SALE

ATTACHMENT OF IMMOVABLE PROPERTY AND SHIPS:

Article 88- The attachment of all kinds of immovable property and ships is effected by
service of the attachment order to the land registry or the offices where the ships registry
is kept.

The attachment of immovable property also covers the income and benefits derived there
from. However, if the debtor does not have any other income an amount sufficient for the
living of the debtor and his family is left to the debtor from the crop or from the sales
proceeds as and when it is sold.

The Creditor public administration shall take the necessary measures for the
administration and operation of the immovable and ships and for the collection of the
benefits and proceeds there from.

NOTIFICATION OF THE ATTACHMENT TO THE SECURED CREDITORS

Article 89- In the attachment of immovable property, the land registry shall notify the
creditors who have a security over the immovable of the attachment.

SALES AND SALE COMMISSIONS:

Article 90- Immovable property is sold by means of public auction by sales commissions.
The sales commission shall consist of the most senior asset officer or someone such
person will appoint, a person elected by the municipality council from among its
members and the land registry officer of the land registry where the immovable is
registered.
EVALUATION OF THE IMMOVABLE:

Article 91- The current value of the immovable property which shall be sold shall be
evaluated by the sales commission by seeking expert opinion.

SALES SPECIFICATIONS OF IMMOVABLES:

Article 92- The collection office shall prepare specifications for the sale of the
immovable bearing the below terms:

   1. name, surname and address of the owner of the immovable,
   2. district, street and door number and special characteristics of the immovable,
   3. the current value of the immovable which shall be subject to bidding,
   4. the guarantee amount in a ratio of 7.5%,
   5. necessary information on the pledges over the immovable which are not yet due
      and to the effect that the sale will be together with all servitude rights,
      encumbrances over the immovable, mortgages, mortgage deeds and annuity
      charge bonds,
   6. if there are any debts due which are secured by means of the pledge of the
      immovable information that such shall not be transferred to the customer and that
      such shall be paid from the sales proceeds with priority,
   7. the kind of expenses that will belong to the buyer.

ANNOUNCEMENTS IN THE SALE OF IMMOVABLES:

Article 93- The collection office shall announce the sale of the immovable at least 15
days prior to the auction date. The place, duration and form of the announcements shall
be set forth by the Ministry of Finance.

The announcement should bear information as to the place of sale, date, time and
condition and characteristics of the immovable.

One copy of the announcement is served to the debtor, its attorney or agent and to those
who have a registered interested at the land registry and whose address is known.

BIDDING AND TENDERING OF IMMOVABLE PROPERTY

Article 94- The guarantee as provided in article 10 paragraphs 1-4 in the ratio of 7.5 % of
the determined value of the immovable shall be obtained from those participating to the
bidding.

The immovable shall be sold following the bidding and after three loud announcements
to the highest bidder. Provided however that, the value tendered should be equal to 75%
of the determined value of the immovable. If there are other creditors with priority over
the public receivable and which have been secured by the subject matter immovable, the
value tendered should be more than the receivables of creditors with priority and should
cover the costs incurred and costs to be incurred.

The due debts secured by a pledge over the immovable are not transferred to the buyer
and are paid out of the sales price.

If it is possible to separate the attached movables and if the value of a part is sufficient to
cover the public receivable, the remaining part is not sold unless the debtor requests the
sale in writing. If necessary the part to be sold can be segregated by the land registry.

One copy of the tender decision is served to the debtor, its attorney or agent and to those
who have a registered interested at the land registry and whose address is known.

EXTENSION OF THE BIDDING

Article 95- If the above stated value has not been realized from the bidding, the bidding is
extended for 7 days with the bid of the highest bidder being reserved. On the 7 th day the
immovable is sold at the same time to the highest bidder. These are stated in the previous
announcement. Provided however that, in the event of their being creditors with priority
the value of the tender should be more than the receivable with priority and the costs, if
not the sale shall not be realized.

EVENT OF NOT BEING ABLE TO TENDER

Article 96- In the event of no offers in the bidding or in the event of the value offered not
being more than the receivables with priority and costs the attachment of the public
administration shall continue until withdrawal by the public administration.

If there is any application to the collection office during this period, provided that such
application is accepted by the public administration an announcement of 7 days is made
for the sale and the immovable is sold to the highest bidder in accordance with the
provisions of article 95. In the event there is no application until the sale of the
immovable is withdrawn, the collection office may put the property up for sale whenever
it deems it appropriate to do so. In such event the above provisions on sale and
announcements and the provisions of article 95 for the tender are applied.

COLLECTION OF THE SALES VALUE OF THE IMMOVABLE

Article 97- If the person to whom the immovable has been sold does not immediately pay
or does not pay within the given time period the tender decision is cancelled and the
immovable is put up for sale within 7 days by the sales commission. There is no need to
notify those concerned of such bidding and the announcement shall be deemed to be
sufficient. The sale shall be made to the highest bidder.

The person who was first awarded the tender is responsible for the difference between the
two tenders and from other damages. The difference from the tender and delay interest is
deducted from the guarantee without the need for any further decision and the balance is
collected by the collection office. Interest is calculated at %%. The public debtor is given
a certificate by the collection office, for the collection of the difference exceeding the
public receivable from the responsible person.

WITHDRAWAL OF THE IMMOVABLE FROM SALE AND GIVING THE
IMMOVABLE BACK

Article 98- In the event the immovable is sold at least one more time within a period of
one year from the date of the second auction and it is not possible to sell the immovable,
the immovable may be withdrawn by the public administration upon the request of the
public administration and the decision of the sales commission. The withdrawal value is
50% of the determined value of the immovable.

Following the completion of the withdrawal formalities the remaining value after the
deduction of the follow up costs and withdrawal costs is set off against the debt. The
immovable which is withdrawn can not be sold within one year of the withdrawal
decision.

In the event the debtor pays the public receivable within one year from the withdrawal
decision of the sales commission together with the delay fines the immovable is given
back to the debtor. The costs of transfer shall belong to the debtor.

In the event of their being an interested third party for a value over 75% or more of the
current value prior to the withdrawal decision the creditor public administration shall
waive the withdrawal.


CANCELLATION OF THE RESULT OF THE TENDER AND REGISTRATION

Article 99- The buyer who has been awarded the tender for the immovable by the sales
commission will have acquired the ownership of that immovable. The cancellation of the
tender may be requested from the enforcement office located at the place of the
immovable by way of a complaint. The service of the tender shall be the commencement
date of the 7 days period required for the complaint. The decision of the enforcement
office may be appealed within 10 days. The request for cancellation is reviewed by the
Appeal office for Enforcement and Bankruptcy. If the value of the asset tendered exceeds
two million liras an oral pleading may be requested. It is not possible to apply to any
court or administrative district office for the cancellation of the tender or the correction of
the registration. The service to the land registry for the registration is done after the
expiry of the time period provided for the complaint and if a complaint has been filed
after the result of the complaint.

PART FOUR: FOLLOW UP BY BANCRUPTCY AND CONCORDATO

FOLLOW UP BY BANCRUPTCY
Article 100- The bankruptcy of the public debtor may be requested within the scope of
the provisions of the Enforcement and Bankruptcy Law.

The bankruptcy office is obliged to inform the public administrations in due time of
persons against whom bankruptcy proceedings have been initiated and whether
liquidation by means of simple or common methods are to be used in order for public
receivables to be recorded in the bankruptcy administration.

CONCORDATO:

Article 101- Even if a bankruptcy request has been made by the public administration the
certified concordato is not compulsory on the public receivables.

SECTION   THREE:    STATUTE   OF                  LIMITATIONS,         CANCELLATION,
PROHIBITIONS AND FINAL PROVISIONS

PART ONE: STATUTE OF LIMITATIONS AND CANCELLATION

STATUTE OF LIMITATIONS FOR COLLECTION:

ARTICLE 102- Public receivables shall be subject to a statute of limitations if not
collected within five years from the beginning of the calendar year following the calendar
year during which the public receivable was due. The statute of limitations provided in
the special laws governing monetary fines are reserved.

The voluntary payments to be made by the tax payer following the expiry of the statute of
limitations shall be accepted.

SUSPENSION OF THE STATUTE OF LIMITATIONS

Article 103- The statute of limitations applicable for collections shall be suspended in the
below cases:

   1. Payment,
   2. Attachment,
   3. All kinds of collection following forceful collection and follow up,
   4. Service of payment order,
   5. Wealth declaration, informing of asset acquisitions and increases in assets,
   6. The application of any of the above 5 transactions to a person who has acted as
      surety or the representatives of foreign persons and enterprises or the fulfillment
      of the above by any such persons,
   7. The reversal of a decision in a disputed public receivable by the district judicial
      office,
   8. The securing of a public receivable,
   9. A decision for the postponement of the enforcement by the district judicial offices
   10. A written application by the indebted public administration for the payment of its
       debt for a receivable between two public administrations,
   11. (additional paragraph: 25/12/2003-law no: 5035/art. 1) {*}An application for the
       payment of a public receivable according to special laws and/or the public
       receivable being subject to a payment plan.

The statute of limitations shall start to run from the calendar year following the year of
the suspension. In the event of the statute of limitations being suspended by a reversal
decision the statute of limitations shall start to run from the first day of the calendar year
following the calendar year in which the new date is due, in the event the public
receivable is secured or the execution is stopped by the district judicial offices the statute
of limitations shall start to run from the first day of the calendar year following the date
the guarantee is lifted and the date the decision to stop ends.

APPLICATION OF THE STATUTE OF LIMITATIONS:

Article 104- If it is not possible to follow up the debtor due to the debtor being in a
foreign country, or the debtor having declared fraudulent bankruptcy or the bankruptcy of
the estate the statute of limitations shall not apply during such period.

The statute of limitations shall start to apply the day following the removal of the reasons
for its non application or continues its course commenced prior to it stopping to apply.

CANCELLATION DUE TO NATURAL CAUSES

Article 105- Public receivables related to assets and sources of income accrued in the
name of those who have lost at least one third of their crop which have been damaged
due to natural causes such as fire, earthquake, erosion flood, famine, frost, dangerous
animals and pest attack shall be cancelled in full or in part by the decision of the Council
of Ministers.

In order to benefit from the provisions of this article a written request must be made
within 6 months of the occurrence of the natural cause to the relevant public
administration.

The local provincial administrative boards shall determine whether there is damage
within the scope of this law and the extent of the damage shall be determined by the
relevant public administration within the general principles to be determined by the
Ministry of Finance.

Article 105 of the tax procedure law shall apply to public receivables within the scope of
the Tax Procedure Law.

CANCELLATION DUE TO IMPOSSIBILITY OF COLLECTION:

Article 106- (amended provision 26/11/1980-law no: 2347/ art 10)
(Amended paragraph: 25/05/1995- Law no: 4108/15) Those public receivables up to an
amount of 5.000.000 liras (including 5.000.000 lira) where it can be seen that their
collection is impossible or where it can be seen that the costs for their collection is more
than the receivable {*} can be cancelled without waiting for the expiry of the statute of
limitations by those who have the authority to cancel in the public administration.

(Additional provision: 03/12/1998- law no: 3505/art 25) The Ministry of Finance and
Customs is authorized to determine the amount of the public receivable to be cancelled.

The persons who have the authority to cancel may delegate part or all of such authority to
local authorities.

PART TWO: PROHIBITIONS AND FINES

DISCLOSING OF CONFIDENTIAL INFORMATION

Article 107- Persons who are authorized for the implementation of this law shall be
punished by imprisonment of 2 months to 6 months in the event that they disclose
confidential information or information which should not be disclosed belonging to the
public debtor or to related persons, to the profession, work and transactions and accounts
of such persons.

Those who disclose such confidential information for the purposes of obtaining a benefit
for themselves or for others shall be subject to imprisonment of five months to two years
and the perpetrators of such crime and a decision not to use the persons who repeat the
crime stated in paragraph one shall be taken.

(repealed third paragraph: 22/07/1998- law no: 4369/art. 82)
(repealed fourth paragraph: 22/07/1998- law no: 4369/art. 82)
(repealed fifth paragraph: 22/07/1998- law no: 4369/art. 82)

(additional provision:30/07/2003 – law no: 4962/art 3) Disclosure of information relating
to collection to entities which are given the right to collect the public receivable shall not
be deemed to be disclosure of confidential information. The method and principles of
giving such information shall be determined by the Ministry of Finance.

THOSE PERSONS WHO WILL NOT PARTICIPATE IN BIDDING AND WHO WILL
NOT BE ENTITLED TO PURCHASE ASSETS FROM BIDDING

Article 108- Persons who are authorized in the implementation of this law will not be
entitled to participate in bidding for assets or purchase assets to be converted to cash
within the scope of the provisions of this law in their own name or in the name or account
of others nor will they be entitled to have such assets purchased through or by third
parties and subsequently transfer such in their name within a period of five years. This
restriction shall be binding on the spouses and relatives by blood or marriage up to the
third degree (including such third degree). The cancellation of such tenders which are
conducted contrary to such restriction may be requested pursuant to Article 99.

Those persons who act contrary to the provisions of this law shall be punished by
imprisonment of three months to three years and prohibition from the civil service for a
period of 6 months to 3 years.

THOSE WHO WILL MAY NOT PARTICIPATE IN VALUATION PROCEDURES
AND DECISIONS:

Article 109- In the implementation of the law, the chairman and members of the sales
commission, experts and chairman and member of the objection commission responsible
for taking decisions on matters to be conveyed to them may not participate in decisions
for valuation and decisions to be given in relation thereto relating to:

    1. themselves or their fiancées or their spouses, even if they are divorced,
    2. blood relatives or relatives by marriage of lineal descendents, adopted children or
       to adopted parents, blood relatives to third degree (including such degree), in
       relatives by marriage even if such marriage no longer exists up to the relatives of
       third degree (including such degree)
    3. Legal representatives or persons for whom they act as proxy.

THOSE WHO PREVENT THE COLLECTION OF THE PUBLIC RECEIVABLE

Article 110- In the event of the debtor against who follow up proceedings have
commenced for the collection of the public receivable in part or in full destroys the asset
or decreases such assets by means of:

   1. Transferring the assets from its possession, destroys the assets or diminishes the
      value,
   2. hiding the assets, by transferring possession of the assets to another person by
      collusive methods or by accepting debts which are not real or by giving
      acknowledgements of receipt against the truth and if the remaining assets are not
      sufficient to meet its debts, the debtor shall be punished by imprisonment of three
      months to three years. Such punishment shall be decreased by half if the damage
      is low; if however, the damage is high the punishment will be increase by half.

THOSE WHO MAKE FALSE DECLARATIONS

Article 111- Those who give false information in making the wealth declarations
requested in accordance with this law and those whose life style does not meet the wealth
declaration shall be punished with imprisonment by the criminal courts of justice from
one month to one year.

THOSE WHO DO NOT NOTIFY OF ASSET ACQUISITONS AND OF ASSET
INCREASES
Article 112- Those persons who have prevented the collection of public receivables or
who have made such collection more difficult by not making timely notifications of
assets acquired and of increases in its assets, gains and income pursuant to article 61 after
making due wealth declarations be punished with imprisonment by the criminal courts of
justice from one month to one year.

THOSE WHO DO NOT NOTIFY ASSETS BELONGING TO DEBTOR WHICH
THEY HOLD IN THEIR POSSESION

Article 113- Those who despite the request made in accordance with the last paragraph of
article 55 do not make a notification of assets belonging to the public debtor which they
hold in their possession will be punished with imprisonment by the criminal courts of
justice from 15 days to 6 months.

THOSE WHO DO NOT GIVE THE REQUIRED INFORMATION

Article 114-Debtors who have received a payment order and who have made a
notification to the effect that it has no assets are obliged to notify together with such
notification or within 15 days of such:

   1. of the latest legal residence and work address,
   2. of other collection offices and public administrations to which it has ongoing tax
      obligations and his account and registration number with such and give a copy of
      his identity certificate.

Those who have not timely fulfilled such duty without a reasonable excuse will be
punished with imprisonment by the criminal courts of justice from one month or fined up
to 100 liras.

FOLLOW UP OF THOSE WHO ARE GUILTY

Article 115- The crimes stated in article 110-114 shall be followed by the public
prosecutor upon the notification of the most senior officer of the public administration
such location.

If such crimes have been committed during the administration and transactions of a legal
entity, then the punishments shall be applicable to the shareholders, representatives and
attorneys, liquidators, chairman of the board of directors and members, auditors and
inspectors or servants who have realized such transaction.


PART THREE: FINAL PROVISIONS

REPEALED LAWS AND PROVISIONS:
Article 116-The laws and provisions which are stated below are repealed:

1. Law on the recovery of revenues dated 5 August 1325,

2. Law dated 18 January 1331, on the addition of paragraphs to the article 11 and 17 of
   the Law on the recovery of revenues dated 2.8.1327,

3. Article 57 of the Regulation on Mines dated 26/26/1332,

4.   Law dated 19 November 1336 and numbered 48,

5. Law dated 1 October 1337 and numbered 156 and article 2 of the Law dated
   26/01/1939 and numbered 3586,

6. Law dated 20/05/1933 and numbered 2184,

7. Law dated 23/12/1934 and numbered 2656,

8. Article 2 of the Law dated 04/07/1934 and numbered 2560,

9. Article 12 of the Law dated 04/07/1934 and numbered 2566,

10. Last paragraph of the article 6 of the Law dated 23/12/1935 and numbered 2871,

11. Law dated 21/08/1940 and numbered 3911 and Law on the taxes and duties whose
    collection procedures are not regulated by a special law dated 12 January 1331 which
    is repealed by article 3 of that Law,

12. The provision of (The tax payments of the taxpayers are not accepted) of the last
    paragraph of the article 103 and provisions on the assets which to be accepted as
    assurance of the articles 352 and 377 of the Tax Procedure Law dated 07/06/1949 and
    numbered 5432,

13. Decree with the force of Law on the collection together with the taxes of the leasing
    revenues of the foundations dated 27.03.1331 and the Laws amending this law dated
    16.09.1332 and 26.07.1330,

14. The provisions of the laws on the delay fines for collection and on the statute of
    limitations for collection of taxes, duties and charges.

EARLY PAYMENT DISCOUNT

Additional Provision 1– (Additional Provision: 28/08/1996-4179 Art. 1)

In the event of payment of the public receivable prior to its legal due date the below
stated discounts and principles shall apply:
1. Discounts for early payments shall be applied in a monthly ratio % 4 for each day
starting from the date of payment to be end of the legal payment period.

2. Amounts remaining after the expiry of the legal payment period shall be deemed to be
early payment and shall be treated in accordance with paragraph 1 until it is set of from
other public receivables. Discounts are not applied to cash returns.

3. In the calculation the periods during which this discount will be applied each month
shall be considered as 30 days and the day of payment is not taken into account.

4. The Council of Ministers is authorized to reduce the ratio in paragraph 1 above to zero
(0) and to increase it by % 8 and to determine different ratios based on the kind and
maturity date of the public receivable.

5. The Ministry of Finance is authorized to determine the form and principles and to
restrict Public receivables to benefit from the provision of this law on the basis of their
kind and period to apply such exclusively to the public receivables to accrue and to
determine the time and manner of applying discounts.

6. (Additional Paragraph: 30/07/2003- law no: 4962/art. 4) The payment date to be
applied to discounts to made in accordance with this provision is the date on which the
money is paid into the account of the creditor collection office for payments made by
means of credit cards and similar cards in accordance with article 41 without
commission.

PROVISIONAL ARTICLES:

FOLLOW UP PROCEDURES WHICH HAVE COMMENCED ACCORDING TO THE
LAW ON RECOVERY OF REVENUES:

Provisional Article 1 – The follow up procedures which have commenced prior to the
date of entry into force of this law shall continue to be conducted in accordance with the
provisions of this law.

PUBLIC RECEIVABLES NOT SUBJECT TO DELAY FINES AT THE DATE OF
PUBLICATION OF THIS LAW:

Provisional Article 2 – Delay fines provided in Article 51 of this law, those public
receivables which have not been paid as the date of publications of this law and which are
not subject to delay fines, and those which have not been paid within six months.

TRUST PAYMENTS TO BE FOLLOWED UP PURSUANT TO THIS LAW

Provisional Article 3 – Trust payments which have been accrued by the Board of Trustees
and which have been notified to tax payers or in the event such tax payers have not been
found which have been notified by way of announcement and which have not been paid
within 10 days of service shall be subject to the provisions of this law.


Provisional Article 4 – (Additional Article: 06/03/1962 – Art. 40/1)

In the event of those persons whose request for postponement of income and corporate
tax and manufacturing, transportation, banking and insurance taxes and those persons
whose debts have matured of the 01/01/1962 in accordance with Article 48 herein have
been rejected prior to the entry into force and those persons who have been subject to the
same article ( with exception of State Economic Enterprises ) making a written request
within one month of the entry into force of this law, the latest situation of such persons is
reviewed once again.

At the end of such review the balance of debts of those persons who are in difficulty shall
be postponed for one time only by means of installment without being subject to the
Ministry of Finances two years condition provided in Article 48 and in a manner not to
infringe the end of the year budget for 1962 ( The debts within the scope of this law are
the balance after collection by force of voluntarily of the debts which have been
postponed by means of installment between 01/01/1962 and the date of entry into force of
this law).

The provisions of the law governing the request for guarantees, interest, the substitution
of the attached assets for guaranty, changing of the guaranty and completing the part of a
guaranty which has diminished in value are reserved.

The Ministry of Finance may transfer its right of postponement under this article in full
or in part to the local organization.

The public receivable will become due in the event that the conditions for postponement
are not complied with; failure to complete within 15 days the value of guaranty which has
diminished or of the value of the attached assets of failure to provide other guaranties or
assets.


Provisional Article 5 – (Additional Article: 23/10/1962 – Art. 85/1)

In the event of industrial enterprises (other than state economic enterprises) the debts of
which have matured as of 01/01/1962 and whose request for the postponement of income,
corporate and manufacturing taxes made in accordance with Article 48 herein have been
rejected prior to the entry into force of the law number 40, those who have been subject
to the same article and those whose postponement applications which have been made in
accordance with provisional article 4 have been rejected and those who have been subject
to the same article making a written request to Finance tax collection offices within one
month of the entry into force of this law, the latest situation of such shall be reviewed
once again.
If in the review it is understood that the debtor will not be able to pay its debt without
sale of the current industrial facility or without preventing the continuation of the
industrial facility or without resorting to precautions which will heavily impede the
continuations of such activities, the debts up to 500,000 liras (including 500,000 liras)
may be postponed by Ministry of Finance and those over 500,000 liras may be postponed
by the Council of Ministers for 5 years. If necessary the collection of the installments can
start at the latest end of three years.

The benefiting of industrial institutions which have stopped their activities due to
financial impossibilities at the time of entry into force of this law depends on such
institutions recommencing activities at the latest within six months of postponement

The provisions of the law governing the request for guarantees, interest, the substitution
of the attached assets for guaranty, chancing of the guaranty and completing the part of a
guaranty which has diminished in value are reserved.

The Ministry of Finance may transfer its right of postponement under this article in full
or in part to the local organization.

The public receivable will become due in the event that the conditions for postponement
are not complied with; failure to complete within 15 days the value of guaranty which has
diminished or of the value of the attached assets of failure to provide other guaranties or
assets.

Provisional Article 6 – (Additional Article: 31/01/1984 – 2975 Art. 9)

The amended Articles 51 and 52 of this law, shall apply to public receivables which have
not been paid despite their payment date being due prior 01/03/1984 from 10/03/1984

Provisional Article 7 – (Additional Article: 26/12/1993 – 3946 Art. 5)

The procedures for collection of receivables which are deemed to be principal receivables
according to Article 51 of this law which has been amended by law number 3505 Article
24 Paragraph 3, prior to the date of entry into force of this agreement shall continue and
such receivables shall be subject to delay penalties from the date of such receivables
being deemed to be principal receivables to the date of their actual payment

Delay fines shall not be applied to fines imposed pursuant to Tax Procedure Law number
213 for smuggling, gross negligence or fault, the maturity dates of which are prior to the
entry into force of this provision

THE DATE OF ENTRY INTO FORCE

Article 117 - This law shall enter into force on 1 January 1954.
THOSE ENTITLED TO ENFORCE

Article 118 – The provisions of this law will be enforced by Council of Ministers.

PROVISIONAL ARTICLES WHICH HAVE NOT BEEN INCLUDED IN THE LAW

1. The Provisional Article of the Law dated 03/12/1988 and numbered 3505

PROVISIONAL ARTICLE 1

2. The Provisional Article of the Law dated 22/07/1998 and numbered 4369

								
To top