Loss of Business Ledgers 2022

Loss of Business Ledgers – Lawyer in Izmir

Under the Turkish Commercial Code, merchants deemed prudent are obligated to retain their commercial books and documents for at least ten (10) years. Loss of these documents can lead to problems with various institutions, primarily the Tax Office, and if a reasonable justification cannot be provided, the merchant may even face imprisonment under Article 359 of the Tax Procedure Law. Therefore, it is crucial for merchants to obtain a certificate of loss immediately if they lose any of the documents they are obligated to keep.

Turkish Commercial Code Article 87/2

If the books and documents that a merchant is obligated to keep are lost due to a disaster such as fire, flood, or earthquake, or due to theft, within the statutory retention period, the merchant may request a replacement document from the competent court in the location of his commercial enterprise within thirty days of learning of the loss. This lawsuit is filed without a defendant. The court may also order the collection of evidence it deems necessary.

With the amendment made on 05.07.2022, the 15-day forfeiture period has been changed to 30 (thirty) days.

https://www.resmigazete.gov.tr/eskiler/2022/07/20220705-1.pdf

Competent and Authorized Court

If the documents that are required to be kept are lost, a lawsuit must be filed with the commercial court in the location of the business.

Statute of Limitations

According to the Turkish Commercial Code and related Supreme Court decisions, it is strongly emphasized that the lawsuit must be filed within a 30-day forfeiture period. This 30-day period begins from the date the rights holders become aware of the situation. In precedent court decisions, lawsuits filed after the expiration of this period are dismissed on the grounds that the forfeiture period has expired.

Parties to the Case

A case filed in commercial court requesting a certificate of loss should be opened without a defendant because there is no opposing party.

The Crime of Concealing Books, Records, or Documents

Traders are required to request a certificate of loss within 15 days of becoming aware of the loss of documents they are obligated to keep. Otherwise, they may face imprisonment under Article 359 of the Tax Procedure Law in the event of an investigation.

Tax Procedure Law Article 359 –  

a) Documents kept or prepared in accordance with tax laws and subject to the obligation of safekeeping and presentation;

1) Those who commit accounting fraud in ledgers and records, those who open accounts in the names of fictitious persons or persons unrelated to the transactions subject to recording, or those who record accounts and transactions that should be recorded in the ledgers, either wholly or partially, in other ledgers, documents, or other recording media in a way that results in a reduction of the tax base,

2) Those who falsify or conceal books, records, and documents, or who prepare documents with misleading content, or who use such documents, 

About eighteen months to five years imprisonmentIt is ruled as follows.

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Izmir Commercial Lawyer

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