Judicial regime for corporations submerged in debt in frame of Turkish Tax Law

It is well known fact that corporationssubmerged in debt have been an important issue in commercial law all along. It has been always stated that cancelled Turkish Commercial Law (TTK) no. 6762 inadequate for the issue. Since TTK no.6762 has regarded the issue as a "capital loss" problem, it has considered only capital of the corporationssubmerged in debt, not interested in mandatory reserve fund of the companies.The problemregulated with TTK no. 6102 being in force in 2012 and the term "submerge in debt" was first time stated. This expression added to the regulation was an important change and led to corporations chronically submerged in debt have sustained their lifetime.In other word, the most important novelty that TTK no. 6102 put forward wasencapsulation mandatory reserve fundinto capital account of corporationssubmerged in debt. In comparison, TTK no. 6102 didn't bring any important newness and copied all other clausesof TTK no. 6762. It is accepted as a positive change since submerge in debt institution and getting into financial straits of stock company requires early intervention and preventive.Besides, this change brings a control mechanism for thecorporations submerged in. Submerge in debt issue stillstand as a reason of corporations' bankruptcy. The issue of submerge in debt of corporations can be detected with annual balance sheet and accounting records in the framework of clauses of TTK no. 6102. After detection of submerge in debt problem, corporations take the position of liquidation. From the perspective of tax law, corporations submerged in debt and also taken the position of liquidation are subjected a tax regime. This regime especially comes true in the frame of KVK, VUK and AATUHK rules. The scope of this thesis is to determine the tax regime forcorporations submerged in debt after the detection of the issue in the frame of commercial law. Literature review methodologywas used in this study. Secondary sources,various numerical examples and tableswere mainly benefitted in determination of data. Especially submerge in debt issue, in the frame of TTK rules, is an important institution since it is not only adds capital in detection of corporations submerged in debt but also adds mandatory reserve fund. By doing so, it gains time for general assembly and save the rights of third party. Additionally, it secures tax gained by government. Therefore, in the point of this guaranty, it is aimed to secure the tax,also consideration of VUK,KVK and AATUHK. Key Words: Submerge in debt, liquidation, Turkish Commercial Law, Capital, Mandatory Reserve Fund