The Constitutional Court has made a decision that will completely change the legal definition of benefits. The Supreme Court found this unconstitutional and struck down the state's practice of repaying people's debt through calculating low interest rates instead of inflation rates.
The Constitutional Court found it unconstitutional for the state to repay debts to citizens and private entities by charging legal interest and abolished a regulation.
The Supreme Court gave an exemplary decision in deciding the challenge to the provisions of the Customs Act.
The Istanbul Tax Court objected to the phrase “legitimate interests” in Article 216 of the Customs Law. In the objections, comments were made regarding the rate of interest at which the refund should be charged in the application for refund of taxes paid with reservation.
Considering the objection, the Supreme Court considered this situation by pointing out that “Interest on excessive and unjustified tax collected or payable even though it is not required by law is to be determined by the administrative authority.”
In its review, the Supreme Court examined cases of states charging improper interest and delayed interest. He pointed out that the repayment of this revenue is based on legal interest rates, which are lower than market interest rates.
In the decision stating that the legal interest rate is 12% annually, it is stated that the possibility that an individual or organization has the right to refund receivables at extremely low interest rates compared to market interest rates will cause economic loss.
In its decision, the Supreme Court struck down the relevant provision of the law, stating that “While a legitimate interest is contemplated in the repayment of delinquent or delinquent interest, there is no mechanism to ensure that the payment of the amount will compensate for the loss of value of the amount due to inflation and not covered by legitimate interest, without significant loss of value.” The decision will take effect after 9 months.
