Foreign Company Manager Accused of Tax Evasion in Turkey: Criminal Investigation and Defense Guide 2026

Foreign company manager accused of tax evasion in Turkey? Learn about criminal investigations, false invoices, hidden accounting records, tax inspections, manager liability, evidence, prosecutor proceedings and defense strategies under Turkish law in 2026.

A foreign company manager working in Turkey may suddenly face a tax investigation concerning transactions that occurred months or even years earlier. The issue may arise from allegedly false invoices, misleading invoices, concealed accounting records, undeclared transactions, irregular bookkeeping or transactions with a supplier already under investigation.

The consequences can extend beyond additional tax assessments. Certain conduct regulated by Article 359 of the Turkish Tax Procedure Law can result in a criminal investigation and potentially imprisonment if the statutory elements of the offence are established. Current law separately regulates conduct such as accounting manipulation, concealment of books and records, misleading documents and false documents.

However, one principle is especially important for foreign managers:

Being the manager of a company under tax investigation does not automatically establish personal criminal liability.

A proper criminal investigation should determine who performed the relevant act, who controlled the accounting process, who approved the transaction, whether the transaction was genuine, and what the individual foreign manager actually knew and did.

In 2026, enforcement against false-document and tax-evasion practices remains an active institutional priority. Turkey’s Tax Inspection Board has implemented its false-document strategy and KURGAN risk-analysis framework, while the Ministry of Justice, Court of Cassation, prosecutors and tax-inspection authorities held a dedicated inter-agency meeting in May 2026 concerning investigations and prosecutions under Articles 359 and 367.

What Is Tax Evasion in Turkey?

Not every unpaid tax or accounting mistake constitutes a criminal tax-evasion offence.

Tax law distinguishes between:

• Tax debts
• Administrative irregularities
• Tax-loss penalties
• Accounting errors
• Disputed tax interpretations
• Criminal conduct falling within Article 359

This distinction is fundamental.

A company may owe additional tax after an inspection without every manager automatically becoming a criminal suspect.

Criminal liability requires examination of the particular conduct covered by the applicable criminal provision.

What Conduct Can Lead to a Criminal Investigation?

Article 359 of the Tax Procedure Law contains several categories of tax-evasion conduct.

Depending on the facts, an investigation can concern allegations such as:

• Accounting manipulation
• Opening accounts in the names of persons unrelated to the actual transaction
• Recording transactions outside the legally required books or records in a manner reducing the tax base
• Altering books or records
• Concealing books or records
• Creating misleading documents
• Using misleading documents
• Creating false documents
• Using false documents

The precise subsection matters because the statutory elements and potential consequences are not identical.

A Tax Dispute Is Not Automatically Tax Evasion

Suppose a foreign-owned company claims a deductible business expense.

The tax authority later disagrees with the treatment.

That disagreement does not automatically mean the manager committed tax evasion.

Similarly, a mistake concerning:

• VAT treatment
• Depreciation
• Expense classification
• Withholding
• Corporate tax calculation

should not automatically be described as criminal tax evasion.

The investigation must identify conduct falling within the criminal statute.

Why Can Foreign Company Managers Become Suspects?

Foreign managers may appear in an investigation because they are registered as:

• General manager
• Board member
• Managing director
• Branch manager
• Authorized company representative
• Bank signatory
• Finance director
• Chief executive
• Authorized signatory

But a corporate title does not necessarily reveal how the company actually operated.

The investigation should establish the manager’s real responsibilities.

Formal Authority and Actual Responsibility Can Differ

Consider a company with the following structure:

Foreign General Manager: commercial strategy and international clients

Local Finance Director: accounting and banking

Procurement Manager: supplier selection

External Accountant: tax declarations

Warehouse Manager: delivery verification

If suspicious invoices are discovered, it should not simply be assumed that the foreign general manager personally created or knowingly used them.

The operational chain must be reconstructed.

Criminal Liability Is Personal

This principle is particularly important in corporate investigations.

The relevant question is not simply:

“Did the company commit a tax irregularity?”

The investigation should also ask:

Who performed the alleged act?

Who instructed it?

Who knew about it?

Who approved it?

Who benefited from it?

What evidence connects the manager personally to the alleged conduct?

A company can have several managers with completely different responsibilities.

False Invoice Allegations

False invoices are among the most important sources of tax-related criminal investigations.

Under Article 359, a false document is essentially a document created as though a transaction or situation existed when in reality it did not.

For example:

Invoice: “Industrial equipment — TRY 5,000,000”

If no equipment was ever purchased, delivered or supplied, the document may raise a false-document issue.

But if equipment genuinely existed and was delivered, the analysis may be different.

Misleading Documents Are Different

A transaction may genuinely exist but be inaccurately reflected.

For example:

Actual purchase: 100 units

Invoice: 300 units

or:

Actual price: TRY 1 million

Invoice: TRY 3 million

Turkish tax law distinguishes a completely false document from a document based on a real transaction but inaccurately reflecting its nature or amount.

This distinction can significantly affect the defense.

Supplier Investigations Can Spread to Foreign-Owned Companies

A common scenario begins with the supplier.

Tax inspectors investigate Supplier A.

Supplier A is suspected of issuing false invoices.

Authorities then identify all companies that received invoices from Supplier A.

One of them is a foreign-owned company.

The company’s manager is then questioned.

But:

Supplier suspicion does not automatically establish that every customer knowingly participated in tax evasion.

Each customer transaction should be examined individually.

Proving the Transaction Actually Happened

Where a false invoice is alleged, reconstruct the commercial transaction.

Relevant evidence can include:

• Contract
• Purchase order
• Quotation
• Delivery note
• Bank payment
• Freight documentation
• Warehouse records
• Inventory movements
• Customs documents
• Production records
• Installation reports
• Photographs
• Emails
• Messages
• Witnesses
• Technical records

The defense should establish more than the existence of an invoice.

It should demonstrate the underlying commercial reality.

Example: Foreign Manufacturing Company

Suppose a foreign manager is accused because the company recorded invoices for raw materials.

The supplier is later identified as suspicious.

The defense can investigate:

Did the raw materials enter the factory?

Are there transportation records?

Were they recorded in inventory?

Were they consumed in production?

Did finished-product output correspond to the materials?

Was payment actually made?

A genuine production trail may be highly significant.

Service Invoices Can Be More Difficult

Suppose the disputed invoice states:

“Management Consultancy — TRY 6,000,000.”

There may be no physical product.

The investigation may ask:

Who provided the consultancy?

What work was performed?

Where are the reports?

Who attended the meetings?

What did the company receive?

For genuine services, preserve:

• Consultancy agreement
• Reports
• Presentations
• Emails
• Meeting records
• Timesheets
• Project documents
• Deliverables

The stronger the contemporaneous evidence of actual performance, the clearer the factual picture becomes.

Bank Payment Does Not End the Investigation

A foreign manager may say:

“The company paid the supplier through the bank, so the invoice must be genuine.”

Bank payment is relevant evidence.

But investigators may examine what happened after payment.

For example:

Company → Supplier → Cash withdrawal

or:

Company → Supplier → Related company → Company shareholder

Unusual onward movements may generate additional questions.

Conversely, suspicious downstream movement does not automatically establish that the purchasing company’s foreign manager knew about it.

Knowledge and involvement must still be examined.

Circular Money Transfers

Circular transactions can attract particular scrutiny.

Example:

Company A pays Supplier B TRY 10 million.

Supplier B transfers TRY 9 million to Company C.

Company C transfers TRY 8.8 million back to a shareholder of Company A.

Investigators may examine whether the supposed commercial transaction was genuine.

If a legitimate explanation exists, preserve the contemporaneous supporting evidence.

Concealing Books and Records

Article 359 also addresses concealment of books and records in specified circumstances. The current statutory text treats failure to produce books and documents whose existence is established through notarization or other means, when requested during an authorized tax inspection, as concealment for purposes of the relevant provision.

Accordingly, a company should not casually ignore a lawful request for accounting records.

What If the Records Were Lost?

Do not invent records.

Instead, determine:

• What was lost?
• When?
• Why?
• Were backups available?
• Was there a server failure?
• Was there a fire or physical loss?
• Were electronic copies preserved?
• Was the accountant holding copies?
• Were authorities notified?

A genuine loss and intentional concealment are factually different situations.

Never Destroy Records After Learning About an Investigation

Foreign managers should immediately preserve relevant records.

Do not:

• Delete emails
• Destroy invoices
• Alter accounting entries
• Backdate contracts
• Fabricate delivery records
• Delete messaging conversations
• Manipulate bank documents

Evidence preservation is essential.

What If the Manager Relied on an Accountant?

Foreign managers frequently rely heavily on Turkish accountants and financial advisers.

But saying:

“My accountant handled everything.”

is not necessarily a complete defense.

The investigation should determine the actual workflow.

Who supplied the accountant with the invoice?

Who approved the supplier?

Who authorized payment?

Did the accountant merely record documents received from company personnel?

Or did the accountant independently manage the disputed process?

Objective evidence should answer these questions.

What If the Foreign Manager Does Not Speak Turkish?

Language can be relevant to knowledge and involvement.

Suppose:

• All invoices were Turkish
• Tax filings were handled locally
• Supplier negotiations were Turkish
• The foreign manager communicated only in English

This does not automatically eliminate criminal responsibility.

But the defense should establish what information was actually provided to the manager.

Preserve:

• English management reports
• Translation requests
• Emails
• Internal presentations
• Delegation documents
• Organizational charts

Foreign Manager Versus Foreign Shareholder

Do not confuse management with ownership.

A foreign shareholder may own the company but have no daily operational role.

Conversely, a foreign manager may own no shares but exercise extensive operational control.

Criminal analysis should focus on conduct rather than simply share ownership.

Foreign Manager Appointed After the Alleged Tax Evasion

Chronology can be decisive.

For example:

2023 — disputed invoices recorded

2024 — tax declarations filed

2025 — foreign company acquires the business

2026 — foreign manager appointed

If the manager had no role during the disputed period, document that clearly.

Preserve:

• Appointment decision
• Trade registry documents
• Employment contract
• Signature authority date
• Bank authorization date

Current management status should not be treated as evidence of participation in historical conduct.

What If the Foreign Manager Resigned Before the Transactions?

The same principle applies in reverse.

If the disputed transactions occurred after resignation, preserve:

• Resignation documentation
• Board decisions
• Trade registry records
• Termination of banking authority
• Termination of signature authority

Exact dates matter.

How Does a Tax Evasion Case Reach the Prosecutor?

Article 367 of the Tax Procedure Law regulates the procedural relationship between tax inspections and criminal proceedings concerning Article 359 offences.

Where tax inspectors identify Article 359 offences during an inspection, the statutory framework requires notification to the Chief Public Prosecutor’s Office together with the relevant report-evaluation opinion. Where prosecutors learn of such suspected offences through another route, Article 367 also regulates requesting the relevant tax examination and the relationship between that examination and opening the public prosecution.

This means that a tax-evasion criminal investigation often has a substantial tax-inspection file behind it.

What Documents May Be in the Criminal File?

Depending on the case, the file may include:

• Tax inspection report
• Tax offence report
• Evaluation opinion
• Company books
• Invoices
• Bank records
• Supplier records
• Tax declarations
• Electronic invoice data
• Witness statements
• Company registry records
• Digital evidence
• Expert reports

The defense should identify which evidence actually connects the individual manager to the alleged conduct.

2026: False Document Enforcement Is Increasingly Data-Driven

An important current development is Turkey’s strengthened false-document risk-analysis strategy.

The Tax Inspection Board published its False Document Combat Strategy and KURGAN taxpayer/professional guide in October 2025. The framework explains the KURGAN analysis system and procedures used in false or misleading document examinations. It remains directly relevant to investigations being conducted in 2026.

For foreign-managed companies, this means investigations can arise through large-scale risk analysis rather than only traditional individual audits.

A risk signal, however, is not the same as proof that an individual manager committed a criminal offence.

2026 Enforcement Cooperation

Tax-evasion enforcement remains an active institutional focus.

On May 21–22, 2026, representatives of the Ministry of Justice, Court of Cassation, Tax Inspection Board, regional appellate judiciary, prosecutors and judges met specifically to discuss investigation and prosecution procedures, practical problems and cooperation concerning Articles 359 and 367 of the Tax Procedure Law.

Foreign managers should therefore treat tax-evasion investigations as potentially serious criminal matters from the earliest stage.

2026 Explanation Procedure Threshold for Certain False-Document Findings

Not every suspicious-document finding necessarily moves directly into the same procedural route.

The Tax Inspection Board’s current 2026 guidance states that, where the statutory conditions for the explanation procedure are otherwise satisfied, a taxpayer may fall within that mechanism where the amount of allegedly used false documents does not exceed TRY 870,000 for 2026, or, even where that amount is exceeded, does not exceed 5% of total purchases of goods and services. The applicability of this procedure depends on the specific statutory conditions and facts of the case.

Therefore, companies should examine the procedural stage before assuming that every notice has identical consequences.

Tax Penalties and Criminal Proceedings Can Coexist

Article 367 expressly provides that a criminal conviction concerning Article 359 offences does not prevent separate application of tax-loss or irregularity penalties.

Accordingly, a foreign manager or company may need to address separate but related proceedings.

A criminal defense strategy should not ignore the tax file, and a tax strategy should not ignore possible criminal consequences.

What Should the Foreign Manager Do Before Giving a Statement?

Before providing a detailed statement, identify:

• Exact accusation
• Relevant tax period
• Relevant invoices
• Supplier
• Amount
• Company’s transaction
• Manager’s role
• Documents bearing the manager’s signature
• Evidence supporting genuine commercial activity

Avoid guessing.

If you do not know a fact, do not invent it.

Prepare a Transaction-by-Transaction Defense

Where dozens of invoices are involved, a blanket statement such as:

“All invoices were genuine.”

may be insufficient.

Create a structured analysis:

Transaction	Supplier	Payment	Delivery/Service Evidence	Manager’s Role
Machinery	Supplier A	Bank	Delivery + installation	Payment approval
Raw materials	Supplier B	Bank	Freight + warehouse	No involvement
Software	Supplier C	Bank	Software + project records	Contract approval
Consultancy	Supplier D	Bank	Reports + emails	Management supervision

This makes individual responsibility easier to analyze.

Identify Who Controlled Accounting

Determine:

• Who received invoices?
• Who entered them into accounting?
• Who approved VAT treatment?
• Who prepared declarations?
• Who communicated with the accountant?
• Who controlled accounting software?

System-access records may sometimes help reconstruct responsibility.

Identify Who Controlled Banking

Bank evidence can establish:

• Authorized users
• Payment approvals
• Transaction times
• Recipient accounts
• Dual-approval procedures

A manager who did not control banking may have a different evidentiary position from the person who personally directed every disputed payment.

Identify Who Selected the Supplier

Supplier-selection evidence can be highly important.

Preserve:

• Quotations
• Tender documents
• Procurement emails
• Vendor onboarding
• Due-diligence documents
• Negotiations
• Approval records

This can show how the commercial relationship actually began.

What If an Employee Committed the Irregularity?

Do not immediately blame the employee.

First establish the facts.

Examine:

• Employee’s authority
• System access
• Procurement authority
• Banking authority
• Communications
• Personal benefit
• Instructions received

Criminal responsibility should be individualized according to evidence.

What If Several Managers Are Accused?

Different managers may have completely different defenses.

For example:

Manager A: responsible for sales.

Manager B: responsible for procurement.

Manager C: responsible for finance.

Manager D: foreign executive responsible only for regional strategy.

Their positions should not be merged merely because all were managers of the same company.

Can Tax Investigation Evidence Help the Defense?

Yes.

Tax records do not necessarily work only against the suspect.

The same investigation may reveal:

• Genuine bank payments
• Real inventory
• Customs imports
• Genuine production
• Real customers
• Genuine transportation
• Supplier communications

Financial evidence can sometimes demonstrate that the alleged fictitious transaction actually had commercial substance.

Do Not Ignore Exculpatory Evidence

The defense should actively identify evidence supporting the manager.

For example:

Foreign manager was outside Turkey when transaction was negotiated.

That fact alone may not resolve the case.

But combine it with:

• No email involvement
• No supplier communication
• No banking authority
• Procurement manager approval
• Genuine physical delivery

and the overall evidentiary picture may change significantly.

Corporate Signature Does Not Automatically Establish Criminal Intent

A manager’s signature is evidence.

But investigators should examine what the document was and what the manager understood.

Signing:

“Payment approved after delivery confirmation”

does not necessarily establish that the manager knew an invoice was false.

Conversely, personally creating a fictitious supplier arrangement presents a substantially different factual situation.

Foreign Managers Living Outside Turkey

A manager who has returned abroad should not simply ignore the investigation.

Determine:

• Whether an investigation exists
• Procedural status
• Whether the person is a suspect
• Relevant tax periods
• Alleged transactions
• Whether any summons or judicial measure exists

International residence does not automatically terminate Turkish criminal proceedings.

Never Coordinate False Statements

If accountants, employees and several managers are being questioned, do not create a collective fictional explanation.

Do not:

• Agree on false facts
• Manufacture contracts
• Backdate documents
• Delete communications
• Pressure employees
• Alter accounting data

Defense strategy should be built around genuine evidence.

20-Step Criminal Defense Checklist for Foreign Company Managers

1. Determine the exact Article 359 allegation.
2. Identify the relevant tax periods.
3. Obtain the disputed invoice list.
4. Identify all relevant suppliers.
5. Preserve contracts.
6. Preserve purchase orders.
7. Preserve bank records.
8. Preserve delivery and transportation evidence.
9. Preserve warehouse records.
10. Preserve customs documentation.
11. Preserve service deliverables.
12. Preserve emails and messaging records.
13. Reconstruct the historical company structure.
14. Identify who controlled procurement.
15. Identify who controlled accounting.
16. Identify who controlled banking.
17. Establish the foreign manager’s actual role.
18. Review the tax inspection and criminal referral material.
19. Preserve potentially exculpatory evidence.
20. Do not alter, destroy or fabricate records.

Frequently Asked Questions

1. Can a foreign company manager be prosecuted for tax evasion in Turkey?

Yes, where Turkish jurisdiction applies and evidence establishes the statutory elements of an offence. Foreign nationality does not provide immunity. However, managerial status alone does not determine personal criminal responsibility.

2. Is every unpaid tax a criminal tax-evasion offence?

No. Tax debts, assessment disputes and administrative violations must be distinguished from the criminal conduct specifically regulated under Article 359.

3. Can a manager be prosecuted because the company used false invoices?

Potentially, but the manager’s individual conduct, knowledge and role must be examined. The existence of a disputed invoice in corporate accounting does not itself answer which individual committed an offence.

4. What is a false invoice under Turkish tax law?

Article 359 treats a false document as one created for a transaction or situation that did not actually exist but was represented as though it did.

5. What if the goods or services were genuinely supplied?

Evidence of genuine commercial performance can be highly important. Contracts, bank records, delivery documents, transportation, inventory, production, customs records and service deliverables should be examined together.

6. Can the manager simply say the accountant was responsible?

That is not necessarily sufficient. The investigation should establish who selected the supplier, approved the transaction, supplied documents to accounting, authorized payments and controlled the relevant process.

7. What if I became manager after the disputed transactions?

Document the chronology immediately. Appointment dates, signature authority, banking authority and corporate records may establish that the alleged conduct occurred before your management role began.

8. Can there be tax penalties and a criminal investigation at the same time?

Yes. Article 367 expressly contemplates criminal proceedings without preventing separate tax-loss or irregularity penalties.

9. Is Turkey using new technology to investigate false invoices in 2026?

Yes. The Tax Inspection Board’s false-document strategy includes the KURGAN risk-analysis framework, which remains relevant to 2026 examinations.

10. What should a foreign manager do immediately after learning about a tax-evasion investigation?

Identify the exact allegation, relevant transactions and tax periods; preserve accounting and commercial evidence; reconstruct internal responsibilities; and prepare the tax and criminal aspects of the case before giving unsupported or incomplete explanations.

Legal Assistance for Foreign Company Managers Accused of Tax Evasion in Turkey

A tax-evasion investigation involving a foreign manager can require simultaneous analysis of Turkish criminal law, tax law, corporate authority and complex commercial evidence.

The decisive questions may include:

Was the underlying transaction genuine?

Who selected the supplier?

Who controlled accounting?

Who approved payment?

Who prepared the tax declarations?

What did the foreign manager actually know?

What evidence connects the manager personally to the alleged conduct?

Fırat Fesih Kaya Law Office provides legal assistance to foreign company managers, directors, investors, shareholders and executives facing tax-related criminal investigations in Turkey.

Lawyer Fırat Fesih Kaya assists foreign clients with tax-evasion investigations, false and misleading invoice allegations, tax inspection files, prosecutor proceedings, corporate-manager liability, commercial evidence analysis, accounting and banking records, and defense strategies concerning allegations under the Turkish Tax Procedure Law.

Early legal preparation can be especially important because tax-evasion investigations frequently concern historical transactions. Emails, accounting records, contracts, bank transactions, delivery documents, customs records and corporate authorization documents may become essential when reconstructing who was responsible and whether the underlying commercial activity genuinely occurred.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No:221, Yıldırım Tower No:148, 06520 Balgat, Çankaya, Ankara, Turkey

This publication is provided for general informational purposes and does not constitute legal advice. Criminal liability, tax exposure, procedural rights and available defenses depend on the applicable version of the legislation, relevant tax period, alleged conduct, individual manager’s role and evidence in each case.