Resolving import and tax challenges to unlock billions in value in Turkey
In Turkey, a global consumer products company faced onerous and unfair treatment under a legacy import duties and tax regime. Judicial proceedings threatened fines and frozen assets, as well as possible penalties to individual employees. The company was contemplating an exit from the market.
The ASG Approach
Our team in Turkey developed a strategy to build upon our client’s limited set of existing relationships in national and local governments, including the Turkish Customs Authority. Through sustained engagement the company expanded that network of relationships, allowing them to reach other key policy makers. A patience and sustained approach was a key to success. Over the course of dozens of meetings we were able to engage various jurisdictions and levels of government, raising awareness of the discriminatory nature of the tax policies and reinforcing the negative impact the current regulations had on Turkey's economy. Our team worked tirelessly to explain and propose solutions beneficial to both the company and the government. Leveraging ASG’s global network we identified and put forth case studies from other markets as possible options for resolution of the issue.
As a result of our efforts, legislation was enacted that paved the way for our client and other similarly situated companies to resolve their financial disputes, thereby allowing our client to maintain a strong presence in Turkey and actually increase its level of investment. This major policy reform unlocked billions of dollars of value for our client, and resulted in a major benefit to the Turkish economy.