NEWSLETTER-2020-metin

60 NEWSLETTER 2020 by proving that the transfer is based on law; that is, in matters to the extent permitted by law, and that she/he acted with reasonable care. The burden of proof rests with the claimant. Liability for Public Debts In limited companies, the legal representatives are personally re- sponsible for uncollected public debts alongside the company and its shareholders. This responsibility of legal representatives is collected in accordance with Social Insurance and General Health Insurance No. 5510, Tax Procedure Law (“VUK”) and the Law on Procedure for Collection of Public Receivables (“AATUHK”). Article 10 of the VUK regulates the responsibility of the legal representatives, as follows: “ In the event that legal entities are taxpay- ers or tax officers, the duty assigned to them is performed by their legal representatives. Taxes and related receivables that cannot be fully or partially collected from the taxpayers or tax officers, due to the failure of the legal representatives to fulfill these duties, are taken from the assets of those who do not perform their legal duties.” According to this Article, in order to collect the taxes and other related debts of the limited company from the assets of the managers, the taxes should not have been collected the by tax administration on the grounds that the managers did not fulfill their tax-related duties. The manager could only be released from the tax-related liability by proving that the failure to perform tax-related duties on time is not due to his own fault. Pursuant to bis Article 35 of AATHUK, which is another provi- sion regarding the personal liability of the legal representatives for the tax debt of limited companies, public receivables that are not fully or partially collected, or those that seem to be uncollectible from the assets of the legal entity are collected from the personal assets of the legal representatives. Bis Article 35 does not seek a condition as to the fulfilment of the obligation in order to collect the debt from the assets of the legal representatives. “However, the legal provision stating that in cases where the public receivable exists and needs to be fulfil -