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However, the situation did not develop that way when
specific to Turkey.

Accordingly, despite the Article 28 of Administrative
Jurisdiction Procedures Law no. 2577 (İYUK) contains
regulation for applying a delay interest at a rate of the
deferment interest that is set pursuant to the Article 48 of
AATUHK in favor of the individual; the concerning regulation
seems far away from providing compensation of the loss to
be calculated as covering the dates between payment and
refund since it’s a regulation intended to compensate for the
losses arising from late execution of court decision.
Moreover, the absence of an explicit law provision, such
as the sub-clause 1-b of Article 112/3 of VUK, concerning
payment of the interest to be applicable in favor of the
taxpayers upon the court decision stating that the tax paid
by the taxpayer is unjust and unlawful, besides the amount
that is paid as tax by the taxpayer, brought along a series of
legal arguments.
Hence, whether the regulation regarding the refund of
excess and unjustifiable taxes enacted through the Article
112/4 of VUK covers the refunds to the taxpayer upon the
court decision or not had been discussed both doctrinally
and judicially and the State’s liability of paying interest was
tried to be explained around this Article for a long time while
some losses were born on the side of taxpayers.
However, when the decisions of tax court rendered recently
in line with the European Court of Human Rights rulings,
Council of State and Constutional Court are examined, it
might be possible to state that this legal argument has
been finalized before the courts and the understanding
that defends constitutional law and superior rules of law
has overcome the perception searching for an explicit legal
regulation regarding the interest to be paid in favor of the
taxpayers upon the court decisions in favor of the taxpayer.

Herein this article, the legal fundamentals of interest
payment liability of the State for the period covering
payment and refund dates upon the tax court decisions in
favor of the taxpayer will be evaluated in the light of existing
legal regulations, judicial discussions lasted in the previous
period and up-to-date court decisions and our suggestions
on the matter will be provided.

Explanations in this article reflect the writer's personal view on the
matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any
responsibility in respect of the information and explanations in the
article. Please be advised to first receive professional assistance from
the related experts before initiating an application regarding a specific
matter, since the legislation is changed frequently and is open to different
interpretations.
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