Members of the Turkish parliament are arguing that new financial regulations could be counterproductive, as Deputy Prime Minister of Turkey, Ali Babacan, announced that the finance ministry is working on a new cash repatriation regulation, reports Hurriyet Daily News.
Turkey issued a cash repatriation law in the beginning of the financial crisis back in 2008, which directed abroad money back towards the country. The previous repatriation was commissioned in an attempt to improve Turkey’s employment and inflation problems, create resources for investment and bring the country back to economic stability through building enterprises’ capital structures.
The Deputy Prime Minister, Ali Babacan, stated to Hurriyet Daily News, “When we enacted the first one, there was an economic crisis in the world. Turkey had not yet become prominent. Cash repatriation will be more effective in this period thanks to Turkey’s greater prominence in world affairs.”
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The finance ministry aims to create a new cash repatriation regulation that will bring back up to $130 billion worth of Turkish citizens’ money abroad. The 2008 repatriation law enforced a 2 percent tax on assets transferred from abroad, combined with a 5 percent in-country tax. Babacan stated that the ministry was working on a new tax rate that will be presented under the terms of the new repatriation.
However there are those in the Republican People’s Party who are opposed to the cash repatriation. General Vice President Faik Oztrak argued in a written statement that the new regulation would condone money laundering and tax dodging.
Hurriyet Daily News reports that Oztrak questioned, “As parliament made a new law on preventing money laundering in February, will it make a new law to launder money now?”
Oztrak continued his statement, debating whether or not authorities would be able to decipher what money coming back to the country came from criminal activity such as drug trafficking, terrorism, bribery or arms trade.
The new law will mandate real and corporate citizens’ assets that are abroad — including money, exchange, gold and other capital instruments — must be declared and registered. The assets will then be repatriated back to Turkey’s national economy.
On April 17, 2013, the finance ministry confirmed that it was already working on creating the new cash repatriation law with the consent and guidance of Prime Minister Recep Tayyip Erdogan.
To read the full story at Hurriyet Daily news, click here.
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