Politics · Turkey · 4 hrs ago
Turkey’s top court rules tax refunds must account for lost value
Turkey’s Constitutional Court found a property-rights violation after a worker was refunded tax without compensation for the time she could not use the money.
Emine Oya Yüksel’s job at a private company ended by mutual agreement, and 169,823 lira was withheld from her severance payment as income tax.
Courts later ruled the tax had been wrongly collected, and she received a refund of 166,219 lira.
A lower tax court had awarded interest, but an appeals court overturned that decision and rejected her claim.
The top court said a refund alone may not cover the loss when money loses value while held by the state.
It said the failure to account for that loss placed an excessive burden on Yüksel and violated her property rights.
The case will now be retried, but the top court did not set the amount or form of any compensation; it also ordered payment of her legal costs.
Turkey’s Constitutional Court ruled that returning unlawfully collected tax without addressing the money’s loss of value can violate the right to property.
The ruling concerned Emine Oya Yüksel, whose severance payment was taxed after her employment ended by mutual agreement.
After the tax was refunded, a regional court rejected her claim for interest, overturning an earlier decision that had ordered an interest payment.
The Constitutional Court found the absence of compensation for the period she could not use the money imposed a disproportionate burden.
It ordered a retrial to address the violation and awarded Yüksel 40,487.60 lira in legal costs.
- Who
- Turkey’s Constitutional Court ruled on an application by Emine Oya Yüksel, a former employee of a private company.
- What
- It found that failing to account for the loss in value of unlawfully collected tax violated her property rights and ordered a retrial.
- When
- The court issued its decision on 18 May 2026. It was published on 30 October 2026.
- Where
- The case involved tax proceedings in Istanbul, Turkey.
- Why
- Yüksel’s tax was refunded without compensation for the period she could not use the money, which the court said imposed a disproportionate burden.
This story does not have two clearly opposing sides.
Yüksel applied to the tax office for a refund of income tax withheld from her severance payment.
Istanbul 8th Tax Court accepted her case and ruled that the tax should be refunded.
Istanbul Regional Administrative Court’s First Tax Litigation Chamber overturned a lower court’s decision to award interest and rejected the claim.
Yüksel filed an individual application with the Constitutional Court.
The Constitutional Court ruled that her property rights had been violated and ordered a retrial.
The decision was published in Turkey’s Official Gazette.
- Severance payment
- 474,911.66 lira
- Income tax withheld
- 169,823.66 lira
- Tax refunded
- 166,219.08 lira
- Court-ordered costs
- 40,487.60 lira
- Constitutional Court decision
- 18 May 2026