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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2014
215
İŞBANK
ANNUAL REPORT 2014
FINANCIAL INFORMATION AND
RISK MANAGEMENT
h.5.3.
Provision of credit cards and promotion of banking services applications:
The Bank has recognized provisions amounting to TL 67,203 for the amount which is recognized
within the framework of credit card expenses of credit card customers or promotions for banking services. (31 December 2013: TL 62,797)
h.5.4.
As announced by material event disclosures 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 74,353, which is the calculation of the suspended income tax/stamp duty, was served to the Bank.
Consideration related to subject, the 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 Bank.
On the other hand, as announced by material event disclosures dated 19 December 2013, in the current year on the same subject 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
152,383 notified to the Bank as of the reporting date. Regarding tax penalties mentioned, having the right to be open to juridical review, the Bank has initiated the agreement process
after assessment and total amount of TL 142,438 has filed an action in the tax courts. A substantial part of such court proceedings has been finalized of the first instance, with some
of the resulting decisions determined in favor of the Bank and others determined against the Bank.
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 company’s 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 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 Group recognized provisions amounting to TL 127,271 of 2014 (31 December 2014: TL 213,702).
h.5.5.
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.
i. Information on Tax Liability:
i.1. Information on current tax liability:
i.1.1.
Information on tax provision:
Explanations in relation to taxation and tax calculations were stated in Note XXI of Section 3. The remaining corporate tax liability of the Parent Bank and the consolidated companies
after the deduction of the temporary tax amount stands at TL 436,879 as of 31 December 2014.
i.1.2.
Information on taxes payable:
Current Period
Prior Period
Corporate Tax Payable
436,879
139,131
Tax on Securities Income
125,373
115,140
Tax on Real Estate Income
3,284
2,798
Banking Insurance Transaction Tax
119,006
94,114
Foreign Exchange Transaction Tax
48
55
Value Added Tax Payable
7,126
5,319
Other
47,709
39,572
Total
739,425
396,129
i.1.3.
Information on premiums:
Current Period
Prior Period
Social Security Premiums – Employees
1,451
1,229
Social Security Premiums – Employer
1,724
1,555
Bank Pension Fund Premiums – Employees
Bank Pension Fund Premiums – Employer
Pension Fund Membership Fees and Provisions-Employees
1,626
1,282
Pension Fund Membership Fees and Provisions-Employer
9
11
Unemployment Insurance – Employees
1,173
973
Unemployment Insurance – Employer
2,330
1,769
Other
493
323
Total
8,806
7,142
i.2. Information on deferred tax liabilities:
The Parent Bank and the consolidated Group companies have TL 1,882 deferred tax liability as of 31 December 2014. The related deferred tax liability is calculated over the temporary
differences between the book values of assets and liabilities in the records and their tax base values calculated according to tax.
Deferred Tax Liability:
Current Period
Prior Period
Tangible Assets Tax Base Differences
1,882
1,833
Provisions
(1)
766
Net Deferred Tax Liability
1,882
2,599
(1)
Comprised of employee benefits provisions.