Turkey faces scrutiny over tax haven list and offshore fund transfers

Questions have been raised regarding the Turkish government's failure to publish a list of tax haven countries for 20 years. Under the Corporate Tax Law enacted in June 2006, a 30 percent tax withholding is required on all money transfers to offshore jurisdictions. However, economist Prof. Dr. Yalçın Karatepe notes that because the official list of these countries has not been announced by the Presidency, this tax cannot be collected, leading to allegations that certain entities are being protected.

Parallel to these concerns, investigations into fund transfers suggest significant capital outflows. Reports based on MASAK findings indicate that between August 24 and September 1, 2026, transfers equivalent to approximately 4.1 billion lira were made to Switzerland. Additional money movements are alleged to have reached Luxembourg, the United Kingdom, Dubai, and the British Virgin Islands.

While recovering these funds is legally possible through international judicial assistance and treaties such as the Strasbourg Convention, the process requires tracing the money, freezing accounts in the destination countries, and proving links to criminal activity. In Switzerland, for instance, the Ministry of Justice would serve as the central authority to coordinate with the Federal Department of Justice in Bern.