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Türkiye Vakıflar Bankası Türk Anonim Ortaklığı
Unconsolidated Financial Report as at and
For the Year Ended 31 December 2013
(Currency: Thousands of TurkIsh Lıra (“TL”))
(Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Section 3 Note I)
In Turkey, there is no procedure for a final and definite agreement on tax assessments. Companies file their tax returns with their tax offices by the end
of 25th of the fourth month following the close of the accounting period to which they relate. Tax returns are open for five years from the beginning of
the year that follows the date of filing during which time the tax authorities have the right to audit tax returns, and the related accounting records on
which they are based, and may issue re-assessments based on their findings.
Deferred taxes
According to the TAS 12 –
Income Taxes
; deferred tax assets and liabilities are recognized, on all taxable temporary differences arising between the
carrying values of assets and liabilities in the financial statements and their corresponding balances considered in the calculation of the tax base, except
for the differences not deductible for tax purposes and initial recognition of assets and liabilities which affect neither accounting nor taxable profit.
The deferred tax assets and liabilities are reported as net in the financial statements only if the Bank has legal right to present the net value of current
year tax assets and current year tax liabilities and the deferred tax assets and deferred tax liabilities are income taxes of the same taxable entity.
In case valuation differences resulting from the subsequent measurement of the items are recognized in the statement of income, then the related
current and or deferred tax effects are also recognized in the statement of income. On the other hand, if valuation differences are recognized in
shareholders’ equity, then the related current or deferred tax effects are also recognized directly in the shareholders’ equity.
Transfer Pricing
In Turkey, the transfer pricing provisions have been stated under the Article 13 of Corporate Tax Law with the heading of “disguised profit distribution
via transfer pricing”. The General Communiqué on disguised profit distribution via Transfer Pricing, dated 18 November 2007 sets details about
implementation.
Pursuant to the relevant Communiqué, if a taxpayer enters into transactions regarding sale or purchase of goods and services with related parties,
where the prices are not set in accordance with arm’s length principle, then related profits are considered to be distributed in a disguised manner
through transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as tax deductible for corporate income tax purposes.
XVII. Additional information on borrowings
The Bank provides funding resources such as syndication and securitization transactions in case of need. In the current period, the Bank has started to
ontained funds through domestic and international bonds.
These transactions are initially recognized at acquisition costs at the transaction date and are subsequently measured at amortized cost using effective
interest method.
XVIII. Information on issuance of equity securities
The shares of the Bank having nominal value of TL 322,000,000 (full TL), representing the 25.18% of the Bank’s outstanding shares, was publicly offered
at a price between TL 5.13-5.40 for each share having a nominal value of TL 1 on November 2005, and TL 1,172,347 was recorded as “Share Premiums”
in shareholders’ equity. TL 448,429 of this amount has been utilized in capital increase on 19 December 2006.
XIX. Information on confirmed bills of exchange and acceptances
Confirmed bills of exchange and acceptances are realized simultaneously with the customer payments and recorded in off-balance sheet accounts as
possible debt and commitment, if any. As at the balance sheet date, there are no acceptances recorded as liability in return for assets.
XX. Information on government incentives
As at 31 December 2013 and 2012, the Bank does not have any government incentives.
XXI. Information on segment reporting
Operational segments are determined based the structure of the Bank’s risks and benefits and presented in Section 4 Note X.
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