In Turkey, the tax system is strictly regulated in order to protect public revenues and combat the informal economy. Within this framework, the fake invoice is regarded as one of the most serious offenses under Turkish tax criminal law. Commonly referred to in practice as a “naylon fatura,” a fake invoice constitutes not merely an administrative tax violation but a criminal offense subject to severe sanctions. At Bayraktar Attorneys, we regularly advise both individuals and corporate clients on the significant legal and criminal risks arising from allegations related to fake invoices and other tax crimes in Turkey.
Legal Definition and Nature of a Fake Invoice
A fake invoice is defined as an invoice issued or used for a transaction that never actually occurred. From the perspective of Turkish tax law, the essential characteristic of a fake invoice is the complete absence of a genuine commercial transaction, despite the appearance of one on paper. Such invoices are typically used to reduce the tax base, unlawfully benefit from VAT deductions, or conceal taxable income. Based on Bayraktar Attorneys’ extensive experience, the proper legal qualification of the invoice—particularly the distinction between a fake invoice and a misleading document—is often decisive in determining criminal liability.
Legal Basis of the Fake Invoice Crime in Turkey
The fake invoice crime in Turkey is regulated under Article 359 of the Turkish Tax Procedure Law (Vergi Usul Kanunu – “VUK”), which governs tax evasion offenses. Article 359 explicitly criminalizes the issuance or use of fake documents and classifies such conduct as tax evasion. This provision elevates fake invoice practices from the realm of administrative penalties into the sphere of criminal law, exposing suspects to substantial prison sentences. At Bayraktar Attorneys, we observe that Article 359 is interpreted broadly in practice, which means that companies and individuals may face criminal investigations even in complex or disputed commercial arrangements.
Constituent Elements of the Fake Invoice Crime
For an act to qualify as a fake invoice crime, certain legal elements must be present. First, there must be no genuine underlying commercial transaction. Second, an invoice or equivalent tax document must be issued or knowingly used in relation to this fictitious transaction. Third, the conduct must result in a tax loss or at least create a risk of tax loss for the public treasury. Finally, the offense requires intent, meaning that the act must be committed knowingly and willingly. Tax inspection reports and findings prepared by tax auditors play a central role in establishing these elements during criminal proceedings.
Penalties for Fake Invoice Crime in Turkey
The penalties for fake invoice crime in Turkey are among the most severe sanctions imposed under Turkish tax criminal law. Pursuant to Article 359 of the Tax Procedure Law, individuals who issue or use fake invoices may face imprisonment ranging from three to eight years. In addition to criminal penalties, the tax authorities may impose tax assessments, tax loss penalties, administrative fines, and late payment interest through separate administrative procedures. Bayraktar Attorneys emphasizes that acquittal in criminal court does not automatically eliminate tax penalties imposed under administrative law, as these processes operate independently.
Criminal Liability in Fake Invoice Cases
With respect to tax crimes in Turkey, criminal liability is not limited solely to the individual who physically issues the invoice. In practice, company directors, shareholders, accountants, certified public accountants, and other professionals who knowingly participate in or benefit from fake invoice schemes may also be held criminally liable. Furthermore, legal entities may be subject to security measures and administrative sanctions. At Bayraktar Attorneys, we attach particular importance to the individualized assessment of liability and the precise determination of intent in such cases.
Criminal Procedure and Judicial Process
Criminal proceedings related to fake invoice offenses are conducted in accordance with the Turkish Code of Criminal Procedure (CMK). These cases typically begin with a tax audit, followed by the issuance of a tax crime report and its submission to the public prosecutor. If sufficient suspicion exists, a public prosecution is initiated and the case is heard before the criminal courts. Although tax audit reports constitute significant evidence, judges are not strictly bound by these reports. Based on our practice at Bayraktar Attorneys, an effective defense strategy at this stage can decisively influence the outcome of the case.
Tax Crimes in Turkey and Corporate Risks
Tax crimes in Turkey, particularly those involving fake invoices, pose not only criminal risks but also serious commercial and reputational consequences for companies. Allegations of fake invoice usage may negatively affect a company’s financial standing, banking relationships, commercial credibility, and eligibility for public tenders. For this reason, early legal intervention by experienced counsel is essential when facing tax audits or criminal allegations related to fake invoices.
Bayraktar Attorneys’ Legal Approach
At Bayraktar Attorneys, we provide comprehensive legal representation and strategic advice in matters involving fake invoices, penalties for fake invoice crime in Turkey, and broader tax crimes in Turkey. From the tax audit stage through criminal investigation and trial, our objective is to protect our clients’ rights and minimize potential criminal exposure. Fake invoice allegations are not merely financial disputes; they are serious criminal matters that may result in imprisonment, making professional legal representation indispensable.
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