ERDEM-NEWSLETTER-2018-metin

258 NEWSLETTER 2018 according to the Law on Collection Procedure of Public Receivables. On the other hand, in the event of a repetition of crimes that constitute contradiction to the Decree, and to the other regulations, the penalties shall be doubled. In addition to the administrative fines stipulated under the Law, as per Article 21 of the Decree that deals with issues concerning su- pervision, natural persons and legal entities in Turkey must present documents and registers, and provide information requested by the competent authorities and supervisory staff for the purposes of au- diting of the matters within the scope of the Decree. Pursuant to the related Article, the Ministry is authorized to, partially or completely, temporarily or permanently, suspend the activities of natural and legal persons who violate this obligation, or to collateralize the subsequent transactions, to record such collaterals as revenue to the Treasury, par- tially or wholly, if necessary, or to remove the collateral in the event of just cause and/or force majeure. Conclusion Commencing 13 September 2018, except for the cases deter- mined under the Communiqué, comprehensive restrictions have been introduced to Turkish residents’ entitlement to determine contract prices and other payment obligations arising from contracts that are in foreign currencies, or in a manner indexed to foreign currencies in contracts for the sale and purchase of movable and immovable prop- erties, all kinds of movable and immovable property lease contracts, including vehicle and financial leases, leasing contracts, employment contracts, contracts of service, and independent contractor contracts. Within a period of 30 days as of 13 September 2018, the effective date of the Decree, the amounts determined in foreign currency under the existing contracts shall be re-determined by the parties to be in Turkish currency, except in cases determined by the Ministry. The De- cree covers not only contract prices, but also any interest, damages for delay, penal clauses, and all kinds of indemnity obligations applicable to the relevant contracts. The calculation method for the conversion to Turkish currency in the event of parties’ disagreement is described in the Communiqué.