Kaynak Holding: Tax inspectors' visit was not ‘raid'

The Kaynak Holding business group, an organization close to the Hizmet movement inspired by Islamic scholar Fethullah Gülen, has denied claims that a Finance Ministry financial crimes unit carried out a raid at its headquarters in İstanbul, saying that inspectors were conducting a routine procedure.

News reports appeared in national media on Wednesday evening that police and tax inspectors had stormed the company's headquarters at about 5 p.m., just a day after claims circulated among media outlets that the government intended to launch an operation against business groups with links to the opposition.

In a statement, Kaynak Holding executive board head Naci Tosun rejected allegations of an operation against the company, saying that a Finance Ministry tax inspection team examined tax documents related to the company's operations. Describing the inspection as a routine visit, Tosun emphasized that the company has always been listed among the top firms in Turkey in terms of tax payments to the state, due its wide-ranging and successful business operations in various fields. He strongly rejected the media claims that Kaynak was the subject of a politically motivated investigation.

The operation at Kaynak Holding headquarters has raised questions over the motive behind the recent Finance Ministry visits to certain business groups and companies, with critics viewing them as politically motivated searches ordered by the government.

Last year, police launched investigations into Turkey's oil distributors, including the Turkish Petroleum Refineries Corporation (TÜPRAŞ) owned by Koç Holding, over suspicions of "trading irregularities" and evasion of private consumption tax (ÖTV). The controversial investigations came after Prime Minister Recep Tayyip Erdoğan issued stern warnings to a number of business groups -- including Koç Holding -- that opened their doors to protesters escaping riot police during the Gezi Park protests in İstanbul's Taksim Square.

Erdoğan said that the owners of the Divan Hotel, which allowed it to be used as a shelter for protesters who had clashed with the police, would pay for their stance once the protests were over. The Koç business group owns both the Divan Hotel and TÜPRAŞ. The recent raid on Kaynak Holding has led to fresh questions over the nature of the sudden government interest in these companies.

Critics of the government have alleged that it is using all the tools at its disposal to punish opponents and rival businesses.

Published on Today's Zaman, 27 March 2014, Thursday