Turkish media etiketine sahip kayıtlar gösteriliyor. Tüm kayıtları göster
Turkish media etiketine sahip kayıtlar gösteriliyor. Tüm kayıtları göster

24 Kasım 2009 Salı

Death By Taxes

Is the Turkish government trying to break the back of the media group that has served as its most vocal opposition by slapping it with a whopping $2.5 billion tax penalty? I’m not an accountant, but there certainly seems to be something suspicious about the record-breaking fine levied on the Dogan Media Group, which publishes several powerful newspapers (Hurriyet, Milliyet and Radikal among them) and owns CNN-Turk, the Turkish-language version of CNN, among other channels. The penalty (which equals the entire value of the company) comes on the heels of a $500 million tax fine issued against Dogan a few months ago. According to Turkish tax officials, Dogan has engaged in deceptive practices and has failed to pay tax on income earned through the sale of a company and through the transfer of shares between companies within the group itself. According to the Dogan Group, everything has been above board and the government, through its taxmen, is out to get it by twisting the country’s financial rules to suit its purposes.

First, the background: Over the last few years, the Dogan group’s media outlets have emerged as perhaps the most vocal critics of the ruling Justice and Development Party (AKP). At one point, Turkish Prime Minister Recep Tayyip Erdogan even called for his supporters to boycott the group’s publications. Interestingly, relations between the AKP and the media group turned especially sour after some of the Dogan publications aggressively reported on the gross financial misdeeds committed by the German branch of a Turkish Islamic charity with close ties to the AKP leadership.

So, is the Turkish government involved in a Putin-esque attempt to silence one of its critics, as part of a larger plan to create compliant media? That’s certainly the view of the people working for the Dogan Group. In a column in Milliyet, Fikret Bila, the newspapers’s Ankara representative and one of Turkey’s leading veteran journalists, says this:
This never, ever seen arbitrary tax penalty is beyond imagination. Without any legal ground, such a practice could not be welcomed anywhere in the world. It was not even seen during the Ottoman Sultanate. Even sultans did not exploit state authority so much.
These two consecutive tax levies are nothing but “tax terror” against the company owner, Aydın Doğan. Motives are not only picking up back-taxes. This is obvious. They are not only additional income for the Treasury. That’s for sure. But it is rather confiscation of Doğan companies. These two fines clearly show that the purpose is Mr. Doğan’s bankruptcy.

What is saddening here is that tax officials committed misconduct. Unfortunately tax officials vulnerable to such temptations are casting shadows over this well-respected duty.

The Doğan Group will soon be asked to return all its assets to the state due to such astronomically high tax fines levied by the said tax officials. This is obviously a confiscation process, not just tax penalties.
The government, in its defense, says the massive fine is simply the result of tax inspectors doing their job.

There really are no clear-cut heroes or villains in this affair. Aydin Dogan, chairman of the Dogan organization, is not a scrappy newspaperman fighting for his life, but rather a media baron and business magnate who is a kind of Turkish Rupert Murdoch, controlling a very large slice of the Turkish media scene. As Andrew Finkel points out in an excellent recent column in Today’s Zaman:
As Turkey's press baron extraordinaire, [Dogan] openly promoted his allies and intimidated his foes to carve out a world favorable to himself. He confessed as much in an interview I once did for TIME magazine in which he defended his papers' support for a press law which actually restricted freedoms of expression but which allowed his media holding to be more aggressive in expanding his share of the television market. Why, he asked me, should he cut off his nose to spite his face?
Mr. Doğan was used to cultivating governments, and in the days of weak coalitions, his support mattered. Many regard the 1995 general election in Turkey as a proxy fight between the Doğan Group and Sabah rather than the parties on the ballot paper. Before entering a (failed) coalition with Tansu Çiller, Mesut Yılmaz went to consult with Doğan and the two remained allies. This in itself was not a crime (Tony Blair paid similar sorts of homage to Rupert Murdoch). However, the Doğan Group was persistently criticized for rendering paper thin the firewall between editorial independence and financial self-interest. Ertuğrul Özkök, the editor of the flagship Hürriyet newspaper, proudly wore two hats -- that of a journalist and that of a member of the board who could happily negotiate incentives from the government for factories his parent company was trying to build.
That said, the recent developments are troubling. I would be more comfortable with the possibility of the government taking the Dogan Group down if there existed a truly independent press in Turkey that could step in and fill the vacuum that would be created. That, unfortunately, is not the case. As I have written before, Turkey’s deeply domestic political polarization has worked its way into the country’s media. Whatever the sins of the Dogan Group’s outlets, the pro-government press (Zaman and it’s English-language affiliate Today’s Zaman, in particular) have not distinguished themselves in recent years, showing a disturbing willingness to be used as tools for spreading disinformation. (You can check out previous media-related posts here.)

Tax officials and Dogan are apparently entering negotiations that might lead to a settlement of some kind, although it’s hard to imagine the government backing down too far on this. Whatever happens, it certainly could cost Turkey, both domestically and abroad, raising questions of press freedoms in the country. The European Union, which Turkey hopes to join, has already expressed its concern, with a spokesman in Brussels saying the other day: "When the sanction is of such magnitude that it threatens the very existence of an entire press group, like in this case, then freedom of the press is at stake.”

Dances With the AKP


Just what is it about Turkey and Kevin Costner? He may be remembered in the United States for “Dances With Wolves” and several other hit films (as well as for “Waterworld” and “The Postman,” two of the most spectacular cinematic duds ever), but he’s certainly no longer the star he once was.

Not so in Turkey, where the Costner magic still seems to be at work. It all started two years ago when Costner and his “rock” band, Modern West (don’t tell me you’ve never heard of them!), came to play a benefit concert in Istanbul for a children’s aid group. During the visit, it was even suggested that perhaps Costner could play the role of Ataturk in a proposed biopic about the secularizing founder of the modern Turkish state. High praise, indeed!

Earlier this year, meanwhile, Turkish Airlines deemed Costner’s star bright enough to recruit him for a massive (and strangely ineffective) ad campaign promoting the airline’s new and improved first class service. Soon his face was plastered on billboards all over Turkey, telling Turks that now they, too, can “feel like a star.” (You can watch the English-language television commercial, where Costner works his charm on a lithe flight attendant, here.)

But now things are getting even more serious. According to reports in the local press, Costner is now getting involved in Turkish politics. In a Friday report in the English language Today’s Zaman, we are told “American actor and director Kevin Costner [has] joined the ranks of celebrities supporting Prime Minister Recep Tayyip Erdoğan's democratic initiative aimed at addressing various problems, including the Kurdish issue.” According to the article, the ruling Justice and Development Party (AKP) had actually invited Costner to attend the party’s upcoming congress, but wasn’t able to make it. Still, according to a statement released by party deputy chairwoman Edibe Sozen (a former professor of “communications,” it should be noted), Costner “conveyed his support for the democratic initiative because it shows the value Turkey attaches to human rights.” (A brief about this in the semi-official Anatolian Agency news service makes it sound like the invite was only issued after Costner himself contacted the AKP to give his unprompted support for the government’s new initiative.)

The Turkish government has been busy laying the groundwork for the unveiling of its highly-anticipated “democratic initiative,” which is mostly aimed at dealing with the long-standing Kurdish problem. A big part of laying that groundwork has involved meeting with civil society groups and other political parties. But now it looks like the government is pulling out the big guns by unveiling “celebrity” endorsements for the initiative. Of course, the ultimate endorsement of the initiative would be the one given by the Turkish people (Kurds, in particular), but having Kevin Costner on board certainly doesn’t hurt.

(UPDATE -- Speaking of celebrity endorsements, the Turkish papers have been running front page headlines about U2's decision to add an Istanbul leg to their current world tour. According to Hurriyet, Egemen Bagis, the government minister who is handling Turkey's European Union membership process, even promised the band that if they come to the country, he will arrange for them to play a gig on one of the bridges crossing the Bosphorus, which would allow them to play at the spot where Europe and Asia "meet." The last ones to try this bi-continental stunt were a pair of top-ranked Chinese and Austrian ping pong players, who played a 30-minute match earlier this summer in the middle of one of the Bosphorus bridges. Motorists in the city of 18 million were not amused.)

(UPDATE II -- The Costner story keeps heating up. Now Turkey's opposition Republican People's Party (CHP) is crying foul over Costner's purported support for the government's democratization initiative. According to news reports, CHP leader Deniz Baykal, speaking at a "grape festival" in Antalya, had this to say: “Who on earth are you? What is it that you know and speak? If they put a map in front of you, you wouldn't be able to locate Şırnak [a city in Turkey's predominantly Kurdish southeast]. You mind your own business."

Baykal even suggested that the government is using Costner's "endorsement" in a deceptive manner. “The prime minister is hiding the truths from the public regarding the opening. He has a project on his mind and plans to make it accepted slowly in the face of possible reactions from the nation. Is it the prime minister’s job to deceive people?” he said.)

(photo -- Kevin Costner and Turkish president Abdullah Gul during a 2007 meeting in Ankara.)