Türkiye İş Bankası A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2015
149
Financial Information and Risk Management
i.5.3.
Provision of credit cards and promotion of banking services applications: The Bank has recognized provisions amounting to TL 79,159 for the amount which is recognized within
the framework of credit card expenses of credit card customers or promotions for banking services. (31 December 2014: TL 67,203).
i.5.4.
As mentioned public disclosures of the Bank on 31 December 2012 and 19 December 2013; an inspection has been made by the inspectors of Tax Inspection Board to “Türkiye
İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı” (“İşbank Supplementary Pension Fund”), which was founded as per the provisions of the Turkish
Commercial and Civil Codes, regarding the payments that fulfill İşbank’s liabilities within the framework of the Articles of Foundation of the Pension Fund and the relevant legislation.
As a result of this investigation, tax audit reports were prepared for the years 2007, 2008, 2009, 2010, 2011 claiming that the aforementioned liabilities should be taxed in terms of
wage base, thus, they should be subject to withholding tax and stamp duty. According to this report, the total amount of tax and penalties notified to Bank was TL 74,353 for 2007
and 2008; and TL 151,899 for 2009, 2010 and 2011 and it was stated that the Bank applied to tax courts to cancel these tax notifications and some of the court decisions were
determined in favor of the Bank and some others were determined against the Bank.
In this context, for the finalized decisions of Regional Administrative Courts related to the years 2007 and 2008 against the Bank, the Bank applied to the Constitutional Court.
According to the decision of the Constitutional Court which is made until the reporting date, there is no predictability in legal conformity for taxing the Bank’s contributions to the
Pension Fund in terms of wage base and for this reason it was accepted that property right of the Bank has been violated according to the 35th article of Constitution. Finally the Court
decided that the amount of tax, penalties and default interest which was paid by the Bank should be paid back to the Bank as for compensation with its legal interest.
According to the decision of the Constitutional Court, it is expected that the cases related to the periods 2007, 2008, 2009, 2010 and 2011 will conclude in favor of the Bank. In this
context, the provisions amounting to TL 207,402 which had been allocated for the mentioned periods, reversed. The path to be followed for other provisions, allocated for the same
reason within the scope of accounting standards for the year 2012 and subsequent periods, will be determined depending on the process. Within the scope of these developments,
the Bank recognized provisions amounting to TL 39,186 as of 31 December 2015 (31 December 2014: TL 35,817).
i.5.5.
The Ministry of Customs and Trade initiated an investigation under Law No: 6502 and now-abolished Law No: 4077 and has imposed an administrative fine of TL 110,110 to the
Bank pursuant to this investigation. The Bank paid TL 82,583, which is the amount calculated by benefiting from the discount within the framework of Article 17 of Misdemeanor Law
No: 5326, provided that the Bank reserves its right to litigate against the related decision and to claim for refund. The Bank has filed a lawsuit in İstanbul 11th Administrative Court for
the cancellation of administrative fine imposed against the Bank in due time. The court proceedings are not finalized as of reporting date.
i.5.6.
Except the provisions which are stated above, other provisions contain provision for expenses, provisions for ongoing lawsuit and other provisions set aside for miscellaneous
reasons.
j. Information on Tax Liability:
j.1. Information on current tax liability:
j.1.1.
Information on tax provision:
Explanations in relation to taxation and tax calculations were stated in section three notes XVIII. The remaining corporate tax liability after the deduction of the temporary tax amount
stands at TL 295,280 as at 31 December 2015.
j.1.2.
Information on taxes payable:
Current Period
Prior Period
Corporate Tax Payable
295,280
392,371
Tax on Securities Income
132,719
118,265
Tax on Real Estate Income
3,323
2,963
Banking Insurance Transaction Tax
111,117
97,579
Foreign Exchange Transaction Tax
68
48
Value Added Tax Payable
4,953
2,879
Other
34,005
32,327
Total
581,465
646,432
j.1.3.
Information on premiums:
Current Period
Prior Period
Social Security Premiums – Employees
89
80
Social Security Premiums – Employer
107
93
Bank Pension Fund Premiums – Employees
Bank Pension Fund Premiums – Employer
Pension Fund Membership Fees and Provisions-Employees
Pension Fund Membership Fees and Provisions-Employer
Unemployment Insurance – Employees
1,130
994
Unemployment Insurance – Employer
2,261
1,988
Others
2
Total
3,589
3,155
j.2. Information on deferred tax liabilities:
None.
k. Information on Payables for Assets Held for Sale and Discontinued Operations:
The Bank does not have any payables for assets held for sale and discontinued operations.
l. Information on Subordinated Debts:
As of 24 October 2012, the Bank issued 10 year-term bond with a nominal value of USD 1,000,000,000 and as of 10 December 2013 issued 10 year-term bond with a nominal value
USD 400,000,000 which are both have the characteristic of subordinated loans for the purpose of making available to the individuals and legal persons who are resident abroad.
Interest rates of aforementioned bonds are 6.00% and 7.85% respectively.
The bonds mentioned are amounting to TL 4,047,133 as of 31 December 2015 (31 December 2014: TL 3,268,784).
