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İş Bankası
Annual Report 2013
Financial Information and Risk Management
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2013
h.5.3. Provision of credit cards and promotion of banking services applications: The Bank has recognized provisions amounting to
TL 62,797 for the amount which is recognized within the framework of credit card expenses of credit card customers or promotions
for banking services. (31.12.2012: TL 53,443)
h.5.4. According to the decision numbered 11-55/1438-M dated 2 November 2011 of the Competition Board, investigation on some
enterprises in banking sector, including 12 banks and 2 financial services institutions, including the Bank, allegedly violating the
fourth substance of Law numbered 4054 article number 4 by has been finalized. As a result of the investigation, 12 banks including
the Bank have been decided to fine with open to judicial review by the Competition Board. In connection with the investigation,
administrative fine amounting TL 146,656 is foreseen for the Bank. While the Bank assesses that activities related to the subject
to the investigation are compliance with the legislation and with this respective decision, the administrative fine given by the
Competition Board is calculated as TL 109,992 after the discount within the framework of the Misdemeanors Law No. 17 of 5326
Article and was paid to Directorate of Tax Administration with the condition of keeping the legal right including the demand refund
and sue against the related decision. On the other hand, in December 2013, the Bank has appealed to Ankara Administrative Court
requesting stay of execution and annulment of aforesaid decision. The case has not been concluded yet and the Bank has allocated
the full amount of TL 109,992 of provision in the financial statements as at 31 December 2013.
h.5.5. As announced by material event disclosure dated 31 December 2012, an inspection, which is related to payments
(contribution) made by Bank to “Türkiye İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı “ which is
founded according to Turkish Commercial Law and Civil Law, was conducted by the Bank Tax Audit Committee Inspectors for fulfilling
its obligations within the framework of the Foundation Share and the relevant legislation. As a result of this interview, the amount
of the related liability is a benefit with the nature of wage for the foundation members who work at the period of payment. Thus
the inspection report was prepared with the claim of getting suspended income tax stoppage on payments/stamp duty on behalf of
penalty for the years 2007 and 2008. According to this report, the tax penalty notice with the total amount of TL 74 million (exact
value), which is the calculation of the suspended income tax/stamp duty, was served to the Bank.
Consideration related to subject, the Parent Bank’s implementation comply with the legislation, conclusion that, there is no legal
basis has been reached. Across the country the lawsuit was filed against the mentioned assessments in various tax courts and the
cases brought to the tax courts of the first instance, a part of decision has been decided in against of the Bank, a part of decision has
been decided in favor of the Parent Bank As of reporting date for a major part of lawsuit, the processes have not been concluded.
On the other hand, while the appeal and protest related with the decisions of Court which are against to Bank has requested by the
Bank, the decisions which are against the administration has requested by the administration and trial is in progress. A portion of
these cases concluded against to the Parent Bank and the other portion of these cases in favor of the Bank.
On the other hand, as announced by material event disclosure dated 19 December 2013, in the current year on the same subject
held on relating to tax inspection reports 2009, 2010 and 2011 periods suspended for income tax, stamp tax assessments held,
and tax penalties of the notification is in progress at this time. According to this report, total tax and penalty TL 134 million (exact
amount) notified to the Parent Bank as of the date of 11 February 2014. Regarding tax penalties mentioned having the right to be
open to juridical review, the Parent Bank has initiated the agreement process after assessment.
Besides of the Bank, an inspection was conducted by Tax Audit Committee Inspectors regarding to the contribution obligations
mentioned above for the period 2007-2011” on Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı Mensupları which is founded
according to Turkish Commercial Law and Civil Law, owned by “Türkiye Sınai Kalkınma Bankası A.Ş”, “Milli Reasürans T.A.Ş”, and
Anadolu Anonim Türk Sigorta Şirketi. As a result of the issued report that companies a total of TL 33 million (exact amount) tax
penalty notices were notified. Assessments made on the subject by the companies application in accordance with the legislation,
which was suspended for Tax Administration concluded that the lack of legal basis of assessment and said assessment were filed
in court against the various tax. A number of cases concluded in favor of the Bank, another part of lawsuits concluded against the
Bank but a significant portion of the case has not been concluded yet. In this process, the Group companies is acting in conjunction
with the Parent Bank, 2009, 2010 and 2011 in relation to the period before the tax authorities to be open to judicial review after the
assessment has started reconciliation process.
Within the scope of these developments, the Parent Bank allocated the amount of TL 213,702 provision as of 31 December 2013.
