UPDATE 1-Turkey's Dogan sees clarity on tax fine deal Nov 24

Thu Nov 12, 2009 2:44pm GMT
 
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ISTANBUL, Nov 12 (Reuters) - Dogan Yayin (DYHOL.IS), Turkey's largest media group, said talks with government officials on Nov. 24 should determine whether a deal can be reached over a huge tax fine, which it says was politically motivated.

Dogan Yayin, which controls half of Turkey's private media, has said the 4.8 billion lira ($3.3 billion) fine was inspired by its critical news coverage of the Islamist-rooted government, including allegations of graft.

Prime Minister Tayyip Erdogan rejects the accusation that the case has been politicised.

The issue has raised concerns about Dogan Yayin's survival and freedom of expression in a country bidding for EU membership.

Dogan Yayin Chief Financial Officer Soner Gedik told broadcaster CNBC-e in an interview on Thursday that his company would prove during its talks with Finance Ministry officials on Nov. 24 that it had not made any mistakes in its tax activities.

"It will be decided at the meeting on the 24th whether there is an agreement or not," Gedik said.

His company has launched a series of legal challenges to the record fine and tax office requirements that it provide collateral to cover the tax demand.

Dogan Yayin's parent, Dogan Holding (DOHOL.IS), said last month it was seeking new partners or the sale of stakes in subsidiaries because of the crippling fine, the size of which exceeds the stock market value of its companies.  Continued...

 

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