ERDEM-NEWSLETTER-2018-metin

360 NEWSLETTER 2018 The referred restrictions state that factory premises or service buildings cannot be transferred through partial spin-off transactions independently from the relevant manufacturing or service business lines. This means that the referred real estate cannot be subject to a partial spin-off, separately and independently. However, we are of the opinion that there is no obligation for the referred to real estate to be within the property of the relevant business lines. The referred buildings may also be used in the relevant manufacturing or service business lines through a lease agreement 3 . Therefore, it may be alleged that the perspective acknowledged by the recent rulings and draft communiqués are contrary to the main purpose envisaged by the partial spin-off transaction. Conclusion Taxpayers expect the Revenue Administration to clarify the ap- plication of partial spin-off transactions, and to stipulate clear rules in order to direct their implementation. However, the current tax rulings and draft communiqués clearly do not meet these expectations. To the contrary, it creates serious concerns regarding the implementation of potential partial spin-off transactions planned in line with the CTC rules, and it creates a tax criticism risk for the formerly concluded partial spin-offs. Additionally, creation of new restrictions that are not stipulated in the law through tax rulings and draft communiqués dam- ages the legality of the tax principle. Within this scope, instead of im- posing new restrictions, it is expected that the Revenue Administration will eliminate concerns regarding the transfer of real estate through partial spin-off transactions. 3 Akarca, Akif; Şafak, Mehmet : İşletmeye dahil taşınmazlar başlı başına kısmi bölünmeye konu edilebilir mi?, 27 April 2017, https://www.dunya.com/kose-ya- zisi/isletmeye-%20dahil-tasinmazlar-basli-basina-kismi-bolunmeye-konu-%20 edilebilir-mi/360033 (Access date: 16.11.2018).