Koç’s auto maker shares fall after tax fine

Koç’s auto maker shares fall after tax fine

After Tofaş, a joint venture between Fiat and Turkey’s Koç Holding, received 67.5 million Turkish Liras ($33.3 million) in taxes and fines, the company’s shares fell sharply on Dec. 17.

The company was asked to pay 29.3 million liras for 2008, 18.3 million liras for 2009 and 19.9 million liras for 2010, totaling 67.5 million liras in taxes and fines (fines without delay), it announced to the Public Disclosure Platform (KAP) late Dec. 16.

Shares in the Turkish car maker Tofaş fell as much as 3.8 percent.

There has been ongoing tension between Koç and the government since the beginning of summer this year. In one incident, during the month-long demonstrations in June, protesters tried to escape police tear gas and pepper spray by taking refuge in an upmarket Istanbul hotel, the Koç-owned Divan hotel. Hotel management admitted the protesters into its lobby.

Shortly after that brawl, tax police raided Koç’s refinery subsidiary, Tüpraş. Officials said it was merely a routine inspection, however, on Sept. 26 the government’s executive committee overseeing defense procurement scrapped a $2 billion deal with Koç’s shipyards, RMK Marine, pledging for new competition.

The MILGEM program involves the eventual construction of eight corvettes. In January, RMK Marine signed the contract for six vessels.