No immunity to audits in new capital bill: Turkish min.

ANKARA (AA)- Contrary to opposition and media allegations, Turkey’s proposed new capital repatriation law would not provide capital coming from abroad with unconditional or unlimited protection from possible legal probes, Finance Minister Naci Agbal said on Friday.

Agbal told a press conference that under the bill, no such broad protection would be extended to capital attracted by the law, after opposition critics alleged the law could Turkey into a “black money” haven.

Introduced as part of an economic stimulus package, the proposed capital repatriation law would allow foreign investors and companies to enjoy tax exemptions and other advantages.

In addition, Turkish nationals seeking to move their capital to Turkey in the form of money, gold, or other financial instruments would be able to directly deposit their money to banks free of tax without dealing with the Finance Ministry or tax offices asking about the origin of the funds.

Debate over the law led the government to take it out of the package so parliament could pass the other stimulus measures, but there are plans to resubmit it.

“Incoming assets will be reported to the tax authorities, put into banks, and registered in the system. The parties that bring and use [the capital] will be transparent. And if there was other evidence or data, this draft does not offer immunity from probes, audits, or analyses,” Agbal said.

He added that the government hopes to lure back the assets of Turkish citizens assets held abroad from “the official part of economy,” and plans for parliament to pass the bill before it goes on summer recess.