ERDEM-NEWSLETTER-2018-metin

358 NEWSLETTER 2018 However, it is observed that some other restrictions that are con- trary to Article 19 of the CTC are introduced to the transfer of real estate through partial spin-off transactions via draft communiqués and rulings published by the Revenue Administration. This newsletter article evaluates current tax rulings and draft communiqués of the Revenue Administration in relation to the transfer of real estate through partial spin-off transaction. Recent Tax Rulings In the tax ruling of the Large Taxpayers Office, dated 11.04.2018, No. 64597866-125[19]-8802 1 , the taxpayer bank has asked the opin- ion of the Tax Administration as to whether or not the transfer of real estate that is used as a branch and administrative building may be sub- ject to a partial spin-off transaction. The opinion of the tax office may be summarized as follows: The transfer of real estate that is used as a branch and administrative building, within the scope of the banking activities, to another full liable equity company cannot be evaluated as a partial spin-off transaction performed in line with Article 19 of the CTC. In another tax ruling of Istanbul Tax Office, dated 16.03.2018, No. 62030549-125[19-2015/298]-268217 2 , the taxpayer has asked the opinion of the Tax Administration as to whether or not the transfer of factory premises and two office buildings recorded on its balance sheet as real estate to a full liable equity company would be accepted as a partial spin-off transaction, performed in line with the CTC provi- sions. In its answer, the tax office states that real estate constituting physical or technical integrity with the manufacturing and service business lines of the company and not being able to be separated from the referred business lines cannot be subject to partial spin-off, inde- pendently. Therefore, the factory building in question cannot be transferred through partial spin-off transaction independently from the relevant manufacturing business line. 1 http://www.gib.gov.tr/node/130814/pdf (Access date: 17.11.2018). 2 http://www.gib.gov.tr/node/130829/pdf (Access date: 17.11.2018).