Turkey’s Tupras agrees to pay $22 million in tax demand, fines

Tupras is Turkey’s sole oil refiner. (Photo courtesy: DHA)

Tupras, Turkey’s sole oil refiner, has agreed to pay 55 million lira ($22 million) after negotiating down with authorities a much higher tax demand and fines, the company said in a filing to the stock exchange on Friday.

The company said last month that it faced a total payment of 160 million lira, including a tax demand for 65.6 million lira and fines of 94.4 million lira, for between 2009 and 2013.

“Negotiation has been held with the Central Reconcilement Commission,”Tupras, owned by Turkey’s biggest company Koc Holding, said, adding the case was now closed. “An agreement has been reached including interest expenses in lieu of the previous demands.”

“As such the disagreement and related legal actions have been terminated,” the statement said.

The tax investigation began in July 2013 when police and finance ministry inspectors raided the offices of Tupras and Aygaz, Turkey’s biggest seller of liquefied petroleum gas, also owned by Koc.

At the time, Finance Minister Mehmet Simsek denied the probe was politically motivated. Some analysts had pointed to criticism of the Koc family, one of Turkey’s wealthiest, by President Tayyip Erdogan, then prime minister, for its perceived role in supporting anti-government demonstrations in June 2013.

The family owns five of Turkey’s 10 largest companies, and Erdogan had expressed anger with the Koc-run Divan Hotel in the capital for opening its doors to protesters fleeing police tear gas. The hotel said at the time that it acted humanely and the accusations of backing the protests were unfair.

Last Update: Wednesday, 20 May 2020 KSA 09:45 - GMT 06:45