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Dogan Claims Turkish Government Using Tax To Muzzle Press

by Lorys Charalambous, Tax-News.com, Cyprus

03 March 2009

Chairman of Turkey’s largest media group, Aydin Dogan, has accused the Turkish government of levying excessive tax fines on his news conglomerate Dogan Sirketler Grubu Holdings to silence the network, which has published several stories alleging widespread corruption within the government. Dogan owns seven newspapers, 28 magazines and three Turkish television channels.

Dogan has contested the TRY826m (USD490m) fine, which relates to ‘tax avoided in the sale of 25% of Dogan TV to a German media group in 2006’. The government alleges that the group deliberately avoided paying tax on the sale for a period of a year and has therefore imposed a fine.

The company claims that the fine “is [instead] a levy on the freedom of the press. It has nothing to do with taxation,” while the Chairman of Dogan has stated that “the basis for it is all political,” and has therefore vowed to fight to have the charge and fines overturned.

In a statement, Dogan has argued that the government’s evidence states that the transaction occurred in 2006 but was only disclosed in 2007 to delay paying tax, a claim that Dogan vehemently denies. A court case is thought likely to ensue.

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