Regulations on the Processing and Protection of Personal Data in the Tax Procedure Law
1.General
The scope of the Tax Procedure Law is determined in Article 1 of the law. The law applies to taxes, duties, and fees entering the general budget, excluding customs and monopoly taxes, as well as taxes, duties, and fees belonging to provincial special administrations and municipalities. According to Article 8 of the law, the taxpayer is the individual or legal entity responsible for the tax debt according to the tax laws. It includes individuals and legal entities as taxpayers and responsible parties. Individuals and entities falling under the scope of the law are obliged to share real estate information, vehicle information, and information about their commercial and economic status with tax authorities and other institutions for the purpose of fulfilling tax obligations related to the event that triggers the tax liability. Additionally, Article 8 of the law specifies that a tax number will be assigned to every real person and legal entity under the citizenship of the Republic of Turkey.
2.Tax Confidentiality
The information mentioned falls within the scope of personal data, and Article 5 of the Tax Procedure Law introduces regulations to ensure the confidentiality and privacy of such information.
The provision titled “Tax Confidentiality” in Article 5 is a regulation for the protection of personal data for individuals. According to Article 5, officials dealing with tax transactions and inspections, including those in tax courts, regional administrative courts, and the Council of State, as well as experts used in tax matters, are prohibited from disclosing or using confidential information obtained in the course of their duties. The prohibition continues even after they leave their positions, with some limitations specified in the article.
To ensure tax security, certain information, such as the annual Income Tax for Income Tax taxpayers, and the declarations of Corporate Income Tax for capital companies, along with the names and titles of taxpayers, may be publicly disclosed by tax offices. Declarations forming the basis for tax assessment, confirmed taxes and penalties, and unpaid tax and penalty amounts with expired deadlines may also be disclosed by the Ministry of Finance. The Ministry of Finance is authorized to determine the procedures and principles for the disclosure of this information.
Certain exceptions are made for reporting individuals and entities to professional organizations and associations established by Law No. 3568 if they are found to have issued or used fraudulent or misleading documents in a tax audit report. However, those who receive information are also obliged to comply with the prohibitions mentioned in this article. The Ministry of Finance is authorized to determine the procedures for disclosing information.
3.Precedent Decision
In the decision of the 4th Chamber of the Council of State numbered 2013/928 E and 2013/6240 K, it is stated that the protection of the privacy of taxpayers is primarily a constitutional right. Article 20 of the Constitution, which regulates fundamental rights and duties, contains general provisions on privacy. The article emphasizes the right of everyone to demand respect for their private and family life, stating that privacy cannot be violated except in cases specified by law and with the written order of the competent authority. The decision highlights that the protection of private information during the tax assessment process is secured by the principle of tax confidentiality in tax law. The confidentiality ensures taxpayers can safely provide their private information to the tax office.
4.Sharing of Personal Data with Administration
In Article 148 of the Tax Procedure Law, it is stipulated that “public administrations and institutions, individuals, and legal entities dealing with taxpayers or transactions with taxpayers are obliged to provide the information requested by the Ministry of Finance or those authorized to conduct tax inspections. Information is requested in writing or verbally. Those who do not provide the verbally requested information are given an appropriate period in writing to confirm and respond.”
This regulation is subject to exceptions through Article 151. Within this context, Article 151 states that information related to the types of diseases of patients cannot be requested from physicians, dentists, dental practitioners, midwives, and health officers. Moreover, lawyers, apart from information related to their roles other than the titles of clients, fees, and expenses, cannot be asked to disclose information regarding matters they become aware of due to the tasks or duties entrusted to them, except for the titles of lawyership or advocacy. It is also stipulated that documents compromising the privacy of the Post, Telegraph, and Telephone Administration’s correspondences cannot be requested. Beyond these, individuals and legal entities from whom information is requested cannot refuse to provide information.
Article 152 of the Law states that information provided by public administrations and institutions, individuals, and legal entities dealing with taxpayers or transactions with taxpayers, except for deaths of taxpayers and responsible parties reported to tax offices by execution offices, civil judges, consulates, and neighborhood and village headmans, will be kept confidential in intelligence archives. The determination of who can benefit from these archives and under what conditions is left to the discretion of the Ministry of Finance. However, leaving the determination of the principles and procedures for the storage of information according to the law to the discretion of the administration contradicts the constitutional rule regarding the regulation of fundamental rights.
Yalçın TORUN Attorney at Law
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