NEWSLETTER-2020-metin

321 TAX LAW capital decrease, and a decision was rendered in favor of the taxpay- ers. 4 Conclusion A capital decrease as a result of a partial spin-off must be evalu- ated by taking the function and the aim of a capital decrease into consideration. As well, considering the relevant Articles in the tax legislation, a partial spin-off is a tax deferral institution. Contrary to these regulations, creating a tax burden on the taxpayers by separating the transactions from each other in capital decreases as a result of a partial spin-off constitutes a contradiction in the aim of the legisla- tor. Moreover, it is considered that any regulation that constitutes the basis of the said taxation does not take place either in the laws or in the communiqués, but also constitutes a violation of the principle of legality in taxation. Finally, it is recommended that companies include the details of the items forming the capital account in their balance sheet, to take care to include taxable items as an element of capital in the transferee company or the newly established company, and to be monitored separately in order not to be subject to any criticism by the tax administration regarding partial spin-off transactions. 4 Ülgen, Soner , “Kısmi Bölünme Uygulamasında Sermaye Azaltımında Öncelik Sıralamasına Yargı Freni Devam ediyor,” MuhasebeTR, http://www.muhasebetr . com/yazarlarimiz/sonerulgen/003/ (Access date: 05.05.2020).