NEWSLETTER-2019-metin

319 TAX LAW Constitutional Court Decision Samsun Tax Court has applied to the Constitutional Court, through concrete norm control, for the cancellation of the above-mentioned law provision regulating the joint and several liability of the share- holders of LLCs, in relation to tax debts of companies. However, the Constitutional Court held the following through its Decision No. E. 2016/14 and K. 2017/170, and published in the Official Gazette dated 24.01.2018: • The responsibility regime of the shareholders and legal rep- resentatives cannot be evaluated to be in the same nature; • The responsibility of the shareholders arises from its share capital and its ability to supervise on administrative operati- ons of the company and not from their own practices; • Therefore, the former Constitutional Court Decision that has annulled the joint and several liability of the legal represen- tatives cannot be taken as a basis for the cancellation of the same responsibility envisaged for the shareholders. Accordingly, the joint and several liability envisaged for the shareholders of LLCs is still applicable and in force 1 . Responsibility of the Legal Representatives of LLCs for Tax Debts General Regulation Pursuant to Article 10 of the TPC, if legal entities are taxpayer- or tax-responsible, their obligations shall be executed by their legal representatives. If legal representatives fail to fulfill these obligations, meaning defect liability, the amount of tax debt of a company that can- not be wholly or partially collected from the assets of the legal entity shall be collected from the personal assets of the legal representatives. 1 İnelli, Ender : Limited Şirket Ortaklarına Kötü Haber, Ekonomist, 17 August 2018 https://www.ekonomist.com.tr/haberler/limited-sirket-ortaklarina-kotu-haber. html.