Decision 1898-2012 of the Constitutional Court, published in the Official Gazette of 25 May 2012, suspended provisionally the application of article 31 of the Decree 4-2012, which added an anti-avoidance provision of "tax simulation" to the Tax Code (article 16 A).
The tax simulation provision allowed the tax authority to adjust the taxpayer's tax liability in cases involving shams or disguised transactions that divert from that which was agreed between the parties and …