General Communiqué on Collection Serial B No. 18

Elements to be Included in Administrative Sanction Decisions

Pursuant to Article 5 of the Communiqué, administrative sanction decisions must include the following elements:

• The identity and address of the person against whom an administrative sanction decision is issued
• The act that is subject to administrative sanction and constitutes a misdemeanor, the place and time of the act, the evidence to prove that the act was committed
• Date of the decision and the identity of the public officials who issued the decision
• Amount, payment period and place of the administrative fine
• The legal remedy, authority and time period that can be applied against the administrative decision and the right to request discounted payment and installments
• Sanctions for non-payment

Finalization of Administrative Fines

Article 7/1 of the Communiqué defines finalization of administrative fines in general terms as (i) no legal remedy is applied against the administrative sanction decision, and (ii) in cases where legal remedy is applied, the conclusion of the proceedings.

Within the framework of this general definition, it is regulated that administrative fines will be deemed finalized in the cases summarized in the table below:

Discount on Administrative Fines

Pursuant to Article 13 of the Communiqué, if the administrative fine is paid within the payment period, a 25% discount is granted. If 75% of the administrative fine is paid within the payment period, the right to discount shall be utilized.

Payment of the administrative fine does not constitute an obstacle to apply for legal remedy against the administrative sanction decision within the due time. Therefore, in the event that a lawsuit is filed simultaneously against an administrative fine paid with reservation and discount, there can be no finalization within the scope of Article 7 of the Communiqué.

The above-mentioned concepts of discounted payment and finalization are important within the scope of the “restructuring of public receivables” laws, which have come to the agenda much more in recent years.

Installments in Administrative Fines

Pursuant to Article 14 of the Communiqué, if the economic situation of the person subject to the fine is not suitable, an installment option may be requested from the unit imposing the fine within the payment period of the administrative fine. In this case, the administrative fine shall be paid in four equal installments and the first installment shall be paid within the payment period of the administrative fine and the remaining three installments shall be paid within one year from the date of notification of the administrative fine within the periods to be determined by the unit imposing the fine.

Security deposit and postponement interest shall not be required for the installments to be made within this scope. However, if the installments are not paid on time and in full, the remaining part of the fine becomes due.

Refund Procedure

Pursuant to Article 18 of the Communiqué, in the event that administrative fines that are registered as revenue to the general budget need to be refunded after they are collected by the units within the scope of the general budget, the refund procedures shall be carried out by the units making the collection.

However, in cases where administrative fines that are general budget revenues are collected by units outside the general budget and then need to be refunded, the relevant refund transaction shall be carried out:

• by the unit making the collection if it is required to be refunded before being transferred to the treasury accounts
• by the tax office to which the administrative fine was transferred if a refund is required after transfer to the treasury accounts

Conclusion

Communiqué has been issued by the Revenue Administration in order to determine the procedures and principles regarding the application of certain articles of the Misdemeanor Law No. 5326, which is the general procedural law for administrative fines, which is a public receivable in general.

It is considered that the articles of the above-mentioned Communiqué, especially the articles on finalization, discount, installment and refund, which are detailed above, should be examined on the basis of each concrete case in terms of the laws on “restructuring of public receivables”, which have been on the agenda much more in recent years.