Dogan hit by record fine

By Chris Dziadul
September 10, 2009 09.18 UK

Turkey’s Dogan Media Group (DMG) has been hit by a record tax fine of TL3.755 billion (€1.736 billion).

The fine, which is being interpreted in some circles as part of a conflict between the DMG and ruling Justice and Development Party (AKP), is unprecedented, being more than the current value of all Dogan Group companies.

It relates to VAT, which the authorities claim should have been paid in share transfers – an argument that DMG says has no legal basis.

DMG was hit by a €345 million fine earlier this year over irregularities connected with the sale of a 25% stake in the company to Axel Springer.

It is the largest media holding in Turkey, with key interests in the TV and print sectors.