Book keeping becomes even more important if company books are submitted as evidence in a legal dispute of a company.
Company books are at utmost importance in case of a lawsuit where the company books of the company or the payroll slips of the company constitute the primary evidence for the company. The judge will make his remarks mostly on these very important items as long as they are kept compliance with the law and regulations.
Year-end closing and notary approval of the company books
According to Turkish commercial code the company books can be qualified as proper evidence with the condition of being formally approved by the public notary at every financial year end. In case of failing to do so the company books are still valid as company books for accountancy purposes and tax matters but the accuracy will not be honored by the courts. If I may give an example on this matter; in a lawsuit where two parties have a dispute on whether an invoice or payment is made or not the company books of the companies are the major evidence along with the bank statements. If one of the parties’ accountants failed to make the approval of the company books then these unapproved books will not be taken into consideration by the court but the other party’s company books approved properly will constitute the evidence for the case.
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