Legislation Bulletin 2026/35 · 4 November 2026

Constitutional Court rules in favor of taxpayer on SCT, VAT, and MVT regarding missing medical board report in archives

Judgment of the Constitutional Court Dated 18/6/2026 and Numbered 2021/42538

Laws concerned: Special Consumption Tax Law No. 4760 · Value Added Tax Law No. 3065 · Motor Vehicles Tax Law No. 197

Published in the Official Gazette on 18 June 2026 under application number 2021/42538, the Constitutional Court decision addresses a dispute concerning practices within the scope of Special Consumption Tax Law No. 4760, Value Added Tax Law No. 3065, and Motor Vehicle Tax Law No. 197. After the applicant purchased a vehicle benefiting from the SCT exemption using a 90% disability health board report, the tax office revoked the exemption and issued a tax assessment with tax loss penalties years later when the report could not be found in the hospital archives.

Following the dismissal of the lawsuit at the local court and appellate stages, the applicant filed an individual application with the Constitutional Court. The High Court deemed the differing evaluations of the same medical report by various courts, the dismissal of the case on the grounds that a subsequently obtained report could not have retroactive effect, and the failure to consider the lack of contradiction between the reports as a violation of the right to a fair trial.

Considering that the tax office made no allegation that the report was fraudulent, a retrial was ordered to eliminate the consequences of the violation. Although this decision does not introduce a direct textual amendment to the relevant tax legislation, it serves as a precedent regarding the law of evidence and judicial review in cases where medical reports submitted for disabled vehicle exemptions become disputed.

Who is affected

Disabled vehicle buyers benefiting from SCT, VAT, and MVT exemptions, taxpayers, tax offices, and tax courts.

Official Gazette text

New era financial statement illustrative examples and presentation principles published for companies

Decision of the Public Oversight, Accounting and Auditing Standards Authority Dated 30/10/2026 and Numbered 75935942-050.01.04-[01/47201]

Laws concerned: Decree-Law No. 660 on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority · Turkish Commercial Code No. 6102

Published by the Public Oversight, Accounting and Auditing Standards Authority, this decision sets out the standard formats, templates, and reporting procedures that businesses must follow when presenting their financial statements. The regulation includes detailed examples regarding the consolidated and separate statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows.

Under this framework, businesses are required to conduct their financial reporting in compliance with international standards such as TFRS 10, TFRS 16, and IAS 7. The document comprehensively shapes presentation formats using either a single-statement or two-statement approach, and requires companies and independent audit firms to act in accordance with these standard formats during financial reporting processes.

Effective date

4 November 2026

Who is affected

Companies subject to independent audit, finance and accounting departments, independent auditors, and audit firms.

Official Gazette text