Protect Your Financial Interests: The Secret of Dispute Reservation in Turkey

Imagine: tax authorities demand immediate payment of a disputed amount under threat of asset seizure.

Many entrepreneurs make a fatal mistake — they pay silently, hoping to sort things out later.

The result?

The court recognizes the payment as voluntary, making it virtually impossible to recover the money.

What is Dispute Reservation?

Dispute reservation (ihtirazi kayıt) is your legal shield for forced payments. It officially records that you do not acknowledge the debt but are forced to pay to avoid negative consequences. Without this reservation, any payment is automatically considered voluntary.

Practical Application Examples

A bank demanded early loan repayment. Refusal threatens asset seizure.

Solution: make the payment with mandatory dispute reservation documentation. Without this, the court will exclude the possibility of fund recovery.

Similarly with tax disputes: disagree with assessed tax but forced to pay to avoid sanctions? Make the payment with reservation, then file a recovery lawsuit.

Connection to Unjust Enrichment

Turkey’s Court of Cassation clearly established: if payment was made under duress and the recipient had no legal grounds for retention, the payer has the right to demand return. But only with proper reservation documentation.

Key Recommendations

Always record dispute reservation in payment documents using the formulation: “Payment is made under duress, without debt acknowledgment and with preservation of dispute rights.”

Remember: in Turkish judicial practice, payment without dispute reservation is not subject to return. Saving time on proper documentation can result in irreversible loss of large sums.

Remember that each situation requires individual consideration. For personalized consultation, contact us.

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