NEWSLETTER-2020-metin

329 TAX LAW conditions, and the unpaid taxes shall be assessed without applying tax penalties. However, default interest is applied to the unpaid taxes. In terms of unpaid taxes, because of the tax reduction application, the statute of limitations starts from the beginning of the calendar year following the date upon which the assessment is finalized. In the tax reduction incentive, the finalization means that the taxes accrued, or penalties levied, are not subject to litigation or all the ordinary rem- edies are exhausted against these taxes and penalties. Conclusion The tax reduction for the tax-compliant taxpayer, which has been introduced for the purpose of voluntary tax compliance, is an important Regulation to prevent injustice and equality created by tax amnesties that are frequently applied in our country. In order to reward tax-compliant taxpayers; in other words, in order to prevent unfair practices subject to criticism because of the amnesty laws, it is provid- ed that tax-compliant taxpayers reduce 5% of their income tax liability declared on the annual tax return not exceeding TRY 1,400,000,00. During the application of the tax reduction, it is considered that paying attention to the issues covered in this article will minimize the risk of possible criticism.