The guarantee application at Turkish Tax Law

As can be understood literally from the word ?guarantee?, the mainfunction of it is to cover public credits. The other functions of this mechanismare deferring the debt, maintaining the functionality of refunding process andproviding some other legal rights to both parts. In these circumstances, themain aim is to prevent public credits from substantial risks.For instance; in time of payment of deferred debts, in order to fullycollect the debt guarantee is needed for. In case of detection of unjustifiedbenefits of payers claiming refunding during tax investigation and in order toprevent colection of payments from risks, in terms of covering the publicdebts, the payers are paid some refunds in turn for guarantee. In addition, instay of execution payers may claim guarantees in turn for their credits andmeanwhile the credit may depreciate, so in order to eliminate such risks theguarantee mechanism can be used.Although practical differences in legal regulations, the core aim ofguarantee mechanism is to guarantee the collection of public credits. Thus, inone hand the debtor has an extra payment opportunity and on the other thecreditor, in case of problems in payment collection, can be prevented fromrevenue losses via turning the guarantee into cash.