The Concept of Statutory Time Limit

THE CONCEPT OF STATUTORY TIME LIMIT

Exceeding the statutory time limit means failure of realization of an event that is expected to take place within a predetermined timeframe, due to some sort of delay.

The concept of time limit has been regulated through different laws.

Statutory Time Limit within the Scope of the Tax Procedures Code

In article 113 of the Tax Procedures Code it has been stipulated that the statutory time limit involves the extinction of a tax debt by means of the passage of a period of time. Statutory time limits shall take effect without consideration of whether or not the taxpayer has made application for one.

In article 114 of the Tax Procedures Code it has also been stated that taxes which are not levied and communicated to the taxpayer within five years starting from the beginning of the year following the calendar year in which the tax debt arose shall become subject to the statutory time limit.

Another important issue relating to time limits is that audits may be conducted at any time until the end of the statutory levy period, including accounting periods whose results are not yet concluded.

Other important legal adjustments relating to statutory time limit might be referred to as force majeure conditions and suspension of the statutory time limit.

Statutory Time Limit within the Scope of the Law Concerning Collection of Public Receivables

Collection of public receivables is regulated through the Law Concerning Collection of Public Receivables. The statutory time limit in collection of public receivables is 5 years. (article 102 of Law No. 6183)

The five-year period shall be taken into consideration as of the beginning of the calendar year following the calendar year related with the payment deadline of the public receivable, in application of the time limit o collection that has been regulated in article 102 of the Law.

Statutory Time Limit within the Scope of the Code of Obligations

In article 125 of the Code of Obligations it has been stated that unless otherwise stipulated each lawsuit (the right to the receivable) has a statutory time limit of 10 years

Whereas in article 126 of the Code of Obligations lawsuits that are subject to a five-year statutory time limit have been listed.

Statutory Time Limit within the Scope of the Turkish Commercial Code

In the Turkish Commercial Code different types of statutory time limits that apply on commercial sales between merchants, current account discordances, valuable documents and the like.

The statutory time limits relating to the commercial provisions in the law cannot be changed through provisions inserted in contracts.

Statutory Time Limit within the Scope of the Banking Act

Pursuant to article 10 of the Banking Act No. 4389, any deposits, custody accounts or claims of any kind with banks that have not been claimed for a period of ten years or more from the date of the last withdrawal or transaction or the date of the last written instruction given by the depositor shall be subject to a statutory time limit.

Pursuant to the Banking Act the right to impose an administrative fine is subject to a five-year time limit as of the date the event giving rise to an administrative fine has occurred.