Keep Us Strong WikiLeaks logo

Currently released so far... 64621 / 251,287

Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07 2011/08

Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

Viewing cable 08ANKARA463, GOT RECTIFIES ERRONEOUS VAT TAX COLLECTIONS FROM FREE TRADE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08ANKARA463.
Reference ID Created Released Classification Origin
08ANKARA463 2008-03-10 13:02 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ankara 
VZCZCXRO0270
PP RUEHDA
DE RUEHAK #0463 0701302
ZNR UUUUU ZZH
P 101302Z MAR 08
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC 5531
INFO RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHIT/AMCONSUL ISTANBUL 3972
RUEHDA/AMCONSUL ADANA 2759
 
UNCLAS ANKARA 000463 
 
SIPDIS 
 
USDOC FOR ITA/MAC/KNAJDI 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON TU
SUBJECT: GOT RECTIFIES ERRONEOUS VAT TAX COLLECTIONS FROM FREE TRADE 
ZONES 
 
REF: ANKARA 278 
 
1. (U) On February 27, the Ministry of Finance ended the collection 
of additional value-added (VAT) tax levied on Free Trade Zones 
(FTZs) operating in Turkey.  Companies operating in FTZs were 
blindsided by a Turkish Customs Undersecretariat circular issued on 
January 21 (Reftel) requiring them to pay VAT on goods used for 
investment, consumption or internal use.  This surprise change 
substantially increased production costs for these companies and had 
many contemplating leaving Turkey. 
 
2. (U) According to media reports, the Finance Ministry's letter to 
Customs stated that all goods delivered to FTZs shall benefit from 
VAT exemptions.  This directive by the Ministry not only lifted the 
additional taxes, but also simplified the process through which 
these goods gain VAT exemption.  Now, instead of listing the items 
in the customs declaration, the companies can fill in a form to 
receive tax exemption. 
 
3. (SBU) While companies operating in FTZs were pleased with the 
Ministry's intervention, they called for an amendment to the 
legislation allowing such collections to ensure that the Customs 
Administration cannot begin assessing these taxes again in the 
future.  Such a change, they argued, would help renew investor 
confidence.  "Only then can the GOT ensure sustained productivity in 
FTZs, which have annual trading volume of $24 billion," said a 
sector representative. 
 
4. (SBU) Comment:  The Finance Ministry's intervention is a welcome 
step in restoring investor confidence.  However, the fact that the 
Customs Administration surprised other Turkish government agencies, 
including reportedly the Prime Minister, with their decision to 
begin assessing this tax emphasizes the need for the Turkish 
government to streamline its tax code and amend conflicting 
legislation.  End comment. 
 
WILSON