Blockchain 1.0 and 2.0


Blockchain 1.0 and 2.0




The development of the blockchain technology has brought us ‘smart contract’ as the product of blockchain 2.0. Smart contracts which are operated by the infrustracture of blockchain provide cost and time reduce in legal processes. On the other hand, in frame of current technology smart contracts have some clashes against our current legal regulations. In our opinion, especially the irrevocable record system of blockchain is in contradiction with some principles of Obligation Law and Data Protection Law. Moreover, the definition of cryptocurrencies are immessenly controversial issue among regulatory institutions. In this article, these dilemmas are emphasized with the short definitions of blockchain and smart contracts.

Robots Between Us


Robots Between Us



Robotic Process as known in recent years in the world of automation Automation (RPA) is blowing. Robot technology is preparing to move to a completely different dimension with Artificial Intelligence. Robots are expected to be active in almost all areas of business life, especially in the office.

Artificial intelligence-based robots promise much more in terms of productivity than people will start a new era in business. It is inevitable that the person who has lost his expertise to the robots in the transition period will have to re-train and have new abilities. It feels great that there will be no need for continuous work in a world where the distinction of robots and people who will take on more creative tasks that surpass artificial intelligence (if possible!)

Of course, the reflections of this trend which includes many rhetorical questions along with the subject of ‘creative’ works that we need to learn in Accounting, Tax and Audit sector have reached the dimensions that will satisfy Y-Generation / digital natives. Let’s get to know the metal collars ready to be the biggest supporter of the white collars after the blue-collar co-boots.

Three industrial revolutions are fallen from the sky..

People in the arms of the 4th Industrial Revolution. The quartet of mechanization, serialization, automation and digitalization have already been engraved in the literature as words that describe these phases of revolution. In fact, every change comes with a survival guide .

“It Is Not the Strongest of the Species that Survives But the Most Adaptable” said Charles Darwin. He sealed this universal truth with his signature in 1809. It’s time to inject the first dose into our bodies, as  we will face more change in next 30 years than the past 100 years of change.


With the development of technology, does anyone deny that we are individuals with the idea of ​ doing more with less in many areas? While thousands of tiny orange robots in distribution centers in the United States take packages for storage to Amazon and send them to mail when sales are made, it does not seem unlikely that the answer to the above question will not come out as yes.

The simplest description of artificial intelligence; Add a pinch computer algorithm on the character of human intelligence. A tremendous mix… How does this mechanism work? Don’t go too far. Siri, technolgy in your palm, would comprehend the logic of the idea. Any artificial intelligence, when you ask the question X, will choose the most rational one from the answers given or defined before, and will present it to you. Of course, our subject matter is not just an artificial intelligence that filters information and turns to us. Keep your imagination wide. We’re talking about a mechanical or bot that can store an enormous amount of data anywhere on the Earth, with a probability of almost zero error. Machine learning, Deep Learning and more kinds of technology.

The issue is deep so it’s time to close the brackets and free dive to our main topic, Robots and Processes. First let’s get to know who these robots are. Then let’s devote the last page of our article to RPA fans. Boss, get me a robot! Although it has a symbolic importance in addition to the recent developments, the fact that IBM’s supercomputer Deep Blue defeated Garry Kasparov in 1997 has contributed to the establishment of a relationship of trust and admiration between man and robot. After seeing what these bots were capable of, the market masters, who realized that playing chess or GO, had little impact on the developing economy, quickly turned their eyes to business. In the first place, robots that would be used in simple production and service tasks would be able to undertake much more complex tasks over time, which happened as targeted. Experts predict that by 2025, many office tasks will be carried out by robots. That’s where our story begins. To date, many employees, who have disappeared from the field of business due to automation in developed economies, had to turn to new business lines that emerged through automated processes. However, this group was more concerned with the group that we call blue collar. Nowadays, the creators emphasize that we are in a phase where artificial intelligence intensely exists in white collar jobs. Our office colleagues, referred to as metal collars, are likely to stand up to us, especially in some service areas. If the basic function of your job is to take the number in one Excel cell and move it to another cell and print this process, the robots will knock on your door soon. It is estimated that 50 percent of the current employment in the US will change in the next 20 years with developing robot technologies.

In 2045, half of the workers, civil servants and middle managers will be robots! It may happen even it is aggressive growth target. Let’s remember Hitachi, it has been four years since production managers transferred some of their tasks to ERP software. There are people who empathize with people and behave mercifully. Do you remember the Mechas in the movie of Spielberg Artifical Intelliigence? Hyundai developed wearable robots (exoskeleton) in 2017 and plans to robotize people, at least in logistics and loading areas, instead of hiring robot workers. Thus, many people will be able to continue working in factories without being unemployed. But there is a bitter truth that human evolution is progressing more slowly than machines. Considering that the performance of the processor doubles every 2 years under Moore’s law, the sentiment that we will fall back in this marathon is strong. On the other hand, the world’s most powerful and valuable resource is intelligence. Human intelligence is the only example that has the ability to imagine, design and implement in all forms of intelligence. That is why I think that the human touch at certain points will never lose its value. Although most of the artificial intelligence produced in Silicon Valley and other technology centers has a cottony feeling that most people focus on developing their talents, rather than replacing them, there is only one reality for our geography. We urgently need to move from digital immigration to digital lover.… Neither Hawking’s concern for human catastrophe nor Musk’s universal income utopia. There is only one magic phrase in the box at the end of the labyrinth: “There is no escape from the smart future”. We didn’t run.

RPA cinema proudly presents you here.

Our digital angels: “Stella Spencer, Sue, Suzy, Sunny”

Hi Spencer, can you tell the Deloitte Times readers about yourself?

In November 2018, I was coded in Deloitte Istanbul office. I’m an RPA Bot. I work as a digital accountant at Deloitte BPS with my four other bot friends.

RPA? What is this RPA? What does it mean to be a bot?

TR / Robotic Process Automation is a software technology that can simulate any process a person makes on a computer. I am software robot or bot, imitating an employee, logging into applications, entering data, completing tasks, and calculating. I’m a metal collar. I have the ability to do all the algorithmic work that the white collar can do. I am able to finish boring and repetitive jobs in 1/10 of a the white collar employee’s time and I can work 7/24 since I am a robot. A virtual ROBOT!

A traditional IT automation can do what it says, what is your difference?

I’m not part of the IT infrastructure. What distinguishes me from traditional IT automation is my ability to be aware of changing conditions, exceptions and to adapt new situations quickly. I am able to be Re-coded, designed, integrated into to the systems easily. I can work 24/7 without getting tired, taking a break, getting tired of it. For example; my job description is to make all declarations and notifications with automatic and multi-thinking systems among applications. It is my job to fill out the tax declarations from the BDP interface and send them to the relevant teams for approval by obtaining PDFs through the online system of revenue administration. Classic automation perceives a missing taxpayer data as an exception and passes it back to the personnel. I can do my own work. I integrate the relevant source system, I can add the missing data to the relevant place without the need for human intervention. I have the ability to correct myself. Sue automatically makes the job exits and entrances from SSI system. She do not need to ask the SSI passwords of the companies to anyone. When Sue is triggered by the task, she is able to find and use relevant register and password records.

It is impressive! What is the cost of a tailor sewing his own tear? I guess you have a cool salary scale, right? Do you take overtime?

My license fee is my bare salary. In the medium term, I would say I cost less than a full-time wage employer of the company. Besides, I work 24/7 and I don’t receive any overtime fee. According to statistics, there is a benefit ratio like 1 robot / 4 full staff.

Cost benefit is indisputable, so why should they prefer to hire you? Does the RPA realm have rules like the famous 3 robot rules?

First of all, it is very important that the businesses that will prefer me are homogeneous in their way of doing business. Our first ultrasound before our birth is the “Proof of Concept” certificate. If you have a frequent, repetitive, rule-based business and a standardized ecosystem, our POC values ​​will be high.So, it means we are ready for delivery. If you have an inventory that the rules change very often or inventory can not be converted to digital or difficult to get digital data, you should not rush for us since there are gaps and non-homogeneous agents in your processes. It is the healthiest way to advance with a full RPA project after the completion of improvement of the existing processes .

Let us come to the answer to the question why you should choose us. According to the RPA constitution, we have 7 golden rules that describe our purpose of existence.

  • Better quality services: fewer errors and better service.
  • Better compliance: Business processes are shaped in accordance with existing regulations and standards.
  • Increased speed: Due to the reduction in processing time of robots, tasks are completed at speeds never experienced before.
  • Increased agility: Ability to adapt to new or changing process rules with reduced load.
  • Comprehensive analysis: Improved efficiency by digitizing and auditing process data.
  • Reduced costs: Manual or repetitive jobs are automated by RPA software. Allows competitive pricing.
  • Employee experience: More interesting and less ordinary, less manual work, high employee productivity.

Very good wishes, but were you able to have desired outcome in real life?

Perfectly… All declaration processes are designed to be lawful, with minimum error and zero error margins, and the processes are managed successfully. We have managed to cure the digital hunchback of accounting and tax in terms of documentation and record management. The homogeneity of the work patterns reached 100%. Automatic approvals, rejections came out of the individual monopoly. Transparency, system logs, information privacy, separation of tasks principle is experiencing the golden age. The working hours and the expenses of the working hours during the declaration periods were automatically eliminated. Our digital literacy rate increade to 100%. We have very good deal with digital collars and digital natives. The countdown has already begun for new processes.

Last word, what can you say for the future tax world?

Short and concise … Technology is the main force that allows time to flow, and those who own it now and in the future, will be the winning party as in the past.







Recent Technologies and Immigrants/Refugees


Recent Technologies and Immigrants/Refugees




This post is on the politics of technology aims to discuss the impact of new technologies on the “empowerment” of migrants and refugees. Transformative technologies addresses the recent rapid technological developments (i.e. artificial intelligence -AI-, mobile phone data, big data and blockchain) which have triggered a growing debate about the ethical, political and legal implications of these innovations.

At the dawn of a new technological revolution, it’s high time to launch a debate about the role of the technology-based projects in international development. The research focuses on a significant area of the internationaldevelopment where transformative technologies have been widely implemented: big data, AI and blockchain-based projects to “empower” refugees/immigrants in the Global South. In recent years, new partnership models bringing together the UN, EU, technology companies and humanitarian NGOs have been promoted as a way of supporting refugees and displaced people.

Blockchain and artificial intelligence are increasingly being touted as something of a magic bullet in a whole range of disciplines. The post suggests that while transformative technologies shall be beneficial for societies, we have to bear in mind that these are not just technical issues — they are political questions too. Focusing solely on the technical side is unlikely to bring the promised progress — and might even have the opposite impact.







Artificial intelligence is the ability of a robot to perform a task as if it possesses human characteristics. We can’t call every robot an artificial intelligence. For a robot to have artificial intelligence, it must have some features. What happens if intelligent machines commit crimes? The purpose of this article is to explain the legal liability of autonomous vehicles in the light of Turkish Law and International Law.

Protection of Computer Programs In the Terms of Private and Criminal Law-1


Protection of Computer Programs In the Terms of Private and Criminal Law




A computer program is translation of the codes that are written in accordance with pre established program language rules into machine language. A code is a type of sentence that creates or responds to what computer is requested. In our article, it is aimed to explain the legal preparation stage of the regulations in International Law and Turkish Law in order to protect the computer programs with the Legal and Criminal Dimensions.

Personal Robots and Personal Data


Personal Robots and Personal Data



Gizem Gültekin Várkonyi

Assistant Coordinator, PhD Fellow

University of Szeged

Faculty of Law and Political Sciences




In this blog post, I argue whether, and at what level, it is possible to exercise right to personal data protection in the era of Social Robots with Artificial Intelligence (hereafter, Social Robot). I analyze the concept of consent that was strengthened in European Union’s General Data Protection Regulation (GDPR). I basically reach to such a conclusion that, a Social Robot at personal usage challenges practicability of the GDPR. This conclusion derives from, first, Social Robot’s ability to collect vast amount of data naturally, e.g. via natural Human-Robot Interaction, or when it connects to Internet. Since a personal Social Robot’s life source, its blood, is personal data, it would be absurd for a user to not to give consent to get more personal services. In addition, it is well-known that most of the users do not read/listen consent texts, or do not understand even if they do so. Moreover, it is not easy to answer to the question of whether consent could be validly given for purposes that even the developer is not able to foresee (Unpredictable by Design). Finally, even if consent was validly given, it is not possible to make Social Robot to “forget” about the personal data in subject, in case when a particular personal data became an organic part of robot’s Neural Network. Otherwise, how consent could be withdrawn from a Social Robot should also be questioned.


For more details about author:

Digital Diplomacy-1


Digital Diplomacy-1





International relations have been improving from the past to present. Diplomacy has an important place in carrying out of these relationships. Diplomacy has begun being emphasized in the development of intergovernmental relations, especially in the determination of peaceful means to the solutions. Today, diplomacy is not only include political but also many economical, commercial, military and cultural fields.

Throughout the history, numerous definitions of diplomacy have been made. The concept of diplomacy, in the sense of conducting international relation processes, was first used by Edmund Burke in 1976. Burke defined the diplomacy as a “skill and tactics used in conducting interstate relations and negotiations”.1

Diplomacy has been subject to various distinctions in the historical process. Diplomacy has also developed due to the the improvements in technology. Hence, the increasing importance of technology and evolving data network should not be ignored in terms of diplomacy.

In today’s world, all parties involved in the political, diplomatic, and political processes, from foreign ministers to clerks can access social media platforms equally or can create a website. In an issue of The Guardian in November 2016, it was reported that WhatsApp has become the main means to the communication in diplomatic circles, including some important voting and negotiation processes at the UN and EU headquarters.2

Diplomacy, acknowledged  as a closed world where public realm is intense, has also begun gaining a new dimension thanks to developing communication technologies. For example, Russian Foreign Ministry improved especially the use of Twitter in order to   fix the uninteresting and dull image. For example, there was this dialogue on Twitter between the CIA and the Russian Foreign Ministry: CIA tweeted an job ad for Russian-speaking, new university graduates, and the Russian Foreign Ministry responded with a tweet saying: “We are ready to help with experts and referrals”, There are more examples similar that show that the diplomacy is becoming new and dynamic.3

In addition, the prevention of religious, political, and sociological false information content spreading on virtual platforms has become a topic of digital diplomacy. tAs these contents can cause serious social criseses, and diplomatic communications to halt and if not escalate them. So automation has a critical importance for diplomacy.

Since a crisis caused by bots can turn into a mass chaos, major problems for ambassadors can occur,. The ambassadors may prefer to remain silent, inn order not to harm their own government interests in the face of these events,. However, it should be noted that, the avoidance of interaction may harm computational diplomacy efforts, if the account belongs to a natural person.

While diplomats existing in the social media can be an effective way to find a solution in a short time, they can also create some uncertain situations. For example, a diplomat liking or sharing a foreign policy article may cause it to be interpreted as an official government point of view. This can lead to a controversy and may involve ordinary citizens in the debate, furthermore, what can be done in the face of these reactions to anonymous accounts, can pose a fundamental problem.4 The way to prevent this is, to respond only to the accounts that have been verified or at least appear to have a real name. Another way is, workingwith data scientists to map the network of political processes and trying to figure out which accounts have the most effective and leading positions in a political debate.5

Digitalization, which can create ambiguity and disturbance, can be used to capture more efficient and beneficial results through government policies to be followed. Artificial intelligence which has gained momentum today, can also be used in the field of diplomacy. Artificial intelligence diplomats can be developed to respond to the questions of citizens in the virtual environment and can be more active in generating quick solutions.

For artificial intelligence to be used more effectively and efficiently, it must be transformed into a state policy and be improved as an international business cooperation. For example, Russian President Vladimir Putin has stated emphasizing the importance of the artificial intelligence.  Putin said that the ones holding the upper hand in the artificial intelligence would “rule the world” and stressed that the future belonged to the artificial intelligence.  He noted that this was not  valid for only Russia but for all humanity.  Also, he added that despite the artificial intelligence was bringing along unpredictable threats, Russia wanted to be ahead in the race.Besides he mentioned that he did not want this monopoly to be held by some people, vocalizing his concern that the seizure of this power by some parties.6

Another proof of this changing world is the United Arab Emirates; her income is mostly from petroleum and is investing in these futuristic technological developments.  The interest in attracting artificial intelligence has been raised to the level establishing a ministry concentrating on it. The United Arab Emirates appointed a new minister in the cabinet, responsible for artificial intelligence. The prime minister Sheikh Mohammed bin Rashid announced the new minister with a tweet.7

These developments display that the digital diplomacy is, today, one of the main cornerstones of the diplomacy notions. The governments are evolving  to adopt new policies and cultivate new cooperation’s in order to attune to this digital medium.

Selin Cetin





Metal Collars


Metal Collars 


Technological innovation started changing our lives fast.The rapid growth in the robotic technology seems to have an effect in our social life in the near future.Robots are used hugely in industrial sector today; and the service sector has begun to be supported by robots. Robots are used in many areas from schools to hospitals.Especially, they begun being the assistant of doctors, nurses and technicians in health sector -from diagnosis of diseases to analysis of disease-related data-. 

Developing the AI focused business processes on, began effecting the income and growth, and it is assumed that this growing will continue in the upcoming years.Parallel to this, the development of new jobs seems to create different expansions in the sector. 

Because, this technological change wave, will diversify the profile of jobs, it will require some workers to be competent or retrained in the current industry or transfer to another sector.The learning programmes based on technology is necessary for ensuring that current employees are capable individuals in the face of technological advancement.The improtant quesiton here is whom these programmes will financed by.Governments will play an important role in promoting investments and providing direct funding to educational institutions. (Robotics, Robots and the Workplace of the Future, 2018)

Robots and An Unemployment Future Danger

Looking into the historical course, due to the mechanization of agriculture, millions of  people lost their jobs, and it forced the unemployed worker masses to immigrate to cities.Then, automation and the globalization shifted the workers from manufacturing sector to service sector. Even though the short term unemployment increased in these transitional periods,  these periods never become permanent.New job areas occurred.New doors opened to the people who lost their jobs.Moreover, these new jobs were generally more agreeable than the old ones.They required more skill but provided more money. As the machines, used in production, evolved, the productivity of workers using these machines were also increased.So, the workers became more valuable and could demand higher salaries.In this post-war period, the rise in productivity reflected at the price of the average worker; and the emerging technology put money in the cash of the workers.(Ford, 2018) So, the workers consumed more, thanks to their increased income. 

The rise of productivity was going to the pocket of workers; but now it almost entirely is going to the pocket of employers and investors. . The share of national income in labour has fallen sharply in proportion to the share of capital, and it continues to decline rapidly. In the face of this situation, we will need to  question one of our most basic assumptions: “Machine is a tool that increases the productivity of the worker.”. Because, nowadays the machines are becoming the workers themselves. (Ford, 2018)

The OECD’s 2016 indicators shows that especially less improved and improving countries are to face greater destructions against automation. As a result of automation, all of the economy can become less labor-intensive and more capital-intensive. For example, although new companies such as Google and Facebook Inc have huge market value, the number of people they employ is very small compared to the size and effects of these companies. (Ford, 2018)

Taxation of Robots

The issue of taxation of robots has been ignored for a long time. But, the idea of taxation of robots began to being discussed intensely with the proposal of “robot tax”, financing the funds of workers who are fired, has been offered to the European Parliament in February 2017. 

Being Taxpayers of Robots

The theme of taxation of robots should be examined from two perspectives: Tax payments by robot and taxes on robot. 

Looking at the Turkish Tax Law, the article 8 describes the taxpayer. According to this, the taxpayer is natural or legal person who has the tax dept according to tax law. At this point, ethical and legal debates will be on the way for the robot to be accepted as natural person like human. As a matter of fact, the subject of legal systems, that exist today, is human. People are the starting point for analysing personality. Although the personality has different descriptions, it generally includes to be the subject to rights and obligations.  In this sense, personality is synonymous with the capacity to have rights (Öğüz & Dural, Türk Özel Hukuku, Kişiler Hukuku, 2013). Although there are differences between countries today, the principles of equality and generality has been accepted in terms of possessing the capacity to have right, namely personality. Meaning, every human has the capacity to have rights and all people are equal to have rights and obligations. 

However, the law has included legal personality as well as natural personality. According to the Article 47 et al. of Turkish Civil Code, communities of individuals organized as an entity in their own right, and communities of independent property that have been specially designated for a certain purpose, shall acquire legal personality in accordance with the special provisions relating to them. The legal persons have all rights and debts other than those related to human nature, such as gender, age, and relationship of creation. They acquire the ability to act by having the necessary organs according to the law and foundation documents. 

In the light of these explanations, it is unthinkable that the robots, which are incapable of many qualities peculiar to human beings, are accepted as natural persons (for today). Therewithal, because the necessary organizational relationship in terms of legal personality is not possible for robots, and it is not also possible for robots to be recognized in the framework of existing regulations and to be able to pay for “labour” given by a robot that replaces human workers today. It should be understood from the letter of the law that, being taxpayer is not possible for technical creatures such as robots. In the face of the present situation, we will continue to keep the robots in the status of “property”. But in the next years, the personality description for robots can be made, beside the distinction between natural person and legal person. 

Argument of Taxation of Robots

The Turkish tax law system is based on Western European and especially Federal German laws as a background.   Our First Constitution, which was drafted in 1921, did not include a provision on taxation. The 1924 Constitution described the tax as public participation in general expenditures of the state and remarked that taxation could only be levied and collected by law. (Öncel, Kumrulu, & Çağan, 2014) The most important tax reform in the history of the Republic of Turkey was materialised by the acceptance of Income Tax Law, Corporation Tax Law and Law of Tax Procedure, during1949 to 1950. The 1961 Constitution adopted the Constitutional Court’s judicial review of the law’s compliance with the Constitution. After 1980, significant changing was made in almost all the tax laws. The transfer of broad powers to the executive authority, regarding the tax law, which was issued after 1980, appears to be the most prominent feature of that period. (Öncel, Kumrulu, & Çağan, 2014)

As Turkey is ranked among the developing countries, today to adapting to the technological developments and regulation of the legal arrangements, will also need to be reshaped accordingly. No doubt one of these will be the tax law. 

Turkish Tax System, in terms of private law, can be examined in the following three divisions:

  • Taxes received from income, 
  • Taxes received from the wealth,
  • Taxes received from the expenditure. 

1. Taxes received from Income and Robots

Taxes received from income generate the majority of modern tax systems. Turkish Tax System allows for two distinctictive tax types levied, which are the “income tax” and the “corporate tax”. 

1. 1. Robots in Terms of Income Tax

The subject of income tax is the income of natural persons. Therefore, the person who has income is in the status of tax payer, and according to the regulation, natural person is liable with the income tax. The description of natural person as an income tax payer, is determined completely according to civil law rules According to this, in regard with the natural persons the beginning of the personality, the end of the personality, the rights of natural persons and their ability to act will be resolved by taking the provisions of the Civil Code as basis. Despite the fact that the concept of natural person is settled within the framework of civil law, tax law regulations will be the basis for the capacity of taxpayer. As a result of this, natural persons who have income, are accepted that they may be deemed to have the capacity in respect of the payment of tax dept, even if they do not have the capacity in the sense of civil law. 

Considering the above explanations of how robots can have natural person status, it will not be possible for robot workers employed in the company earn right to salary for their labor.In this context, we cannot discourse that robots earn income like natural person, hence we cannot evaluate in terms of Civil Law in terms of natural person status,. Therefore, we cannot mention a tax liability under the Income Tax Law. 

At the same time, income derived from the possession of property and rights listed in Article 70 of the Income Tax Law, their ownerships, possession, easement and usufruct rights, are described as  real estate capital incomes. (Öncel, Kumrulu, & Çağan, 2014) It is also within the scope of this definition that income tax is levied on permanent fittings, fittings, fixtures and upholstery hired on separate from real state earnings.” So, the income earned of employed robots which reside as movable properties in a factory, need to be levied. 

In the Article 80 of Income Tax Law, the other earnings and revenues are drafted as a type of income. In this scope, earnings are divided into “appreciation gains” and “provisional (temporary) gains”. 

Briefly, the appreciation gains are generated from holding some investments for a period of time than selling them off. (Öncel, Kumrulu, & Çağan, 2014) In this respect, for example, gains from the selling off the rights like the use of a secret formula or manufacturing on an experimental basis in industry, commerce and science, are levied as appreciation gain. Therefore, the taxation of the rights acquired through robots and artificial intelligence can be considered as such. Furthermore, the gains originating from the selling off of the copyrights of artificial intelligence and robotic products, by the people other than their inventors and the legal heirs, can also be subject to taxation.

After a company shut downs its activities on robotic technology, the gain obtained as a result of the wholly or partly selling off the remaining property assets, may also be levied as a earn on appreciation gain. 

1. 2. Robots in Terms of Corporate Tax

Corporate Tax is the taxation of the income of some legal persons other than natural persons, individual entities and private companies, and some entities that do not have legal persons. (Öncel, Kumrulu, & Çağan, 2014) The aim is that capital income is levied more heavily than labour income. 

In terms of the Article 1 of Corporate Tax Law, subject the of corporate tax is earnings of corporations. Also, according to the same article, the liables of corporate tax are corporations, cooperatives, financial public institutions, financial managements, that belonged to associations and foundations and business partnerships. 

One of the proposals for the recognition of personality to robots is propounded by the EuRobotics working group, which has been working with the European Union. The electronic personality model that they suggest also comes from the legal personality, and they claim that the electronical personality can be implemented for robots.   Each robot registers an official register and, at the time of registration, designs a structure similar to the trade registry system in the form of entitlement to personality, and proposes the use of such funds in case of compensation liability. 

Altough the path is taken from the legal person model, an income -corporate earning- should be obtained as if it was in the income tax, in order to be levied. This proposal adverts the creation of assets, that will be specific to the field of activity, after the autonomous robots have been recorded the official register. But, when the calculation of tax base in corporation tax is checked, it is referenced to the articles about the commercial earnings of Income Tax Law. In this respect, in order to apply the corporation tax, it will be necessary for the robots’ status to be determined as a legal personality, as well as, the continuity of the factor of obtaining this earning and the activity to be carried out. 

2. Taxation of Wealth and Robots

In Turkish Tax Law, besides the taxes collected from the income and expenditure, the taxes collected from the wealth are also take place. In this category, there are real estate tax, inheritance and transfer tax, motor vehicles tax. 

In the Article 1 of Motor Vehicles Tax, the tax liability will be started with the recording and registration. The subject of the motor vehicles tax is motorized land and air vehicles. And the taxpayer is natural and legal persons, which record and register motor vehicles in the relevant registries. 

Considering robots, it is not possible to accept that they are subject to motor vehicles tax directly.    However, it is also possible to register robots by the means of a registration system to be created, starting from the personality models foreseen for robots. In this respect, recording and registering registrants may be subject to taxation, and the person who appears to have the property of the robot at the time of registration may also have a tax liability. The obligation will also change naturally with the change of ownership on the register. 

3. Taxation of Expenditure and Robots 

Taxation of expenditure is taxes on produced, sold or consumed properties and services. They are levied not at the income or wealth but in the prices of the goods and services, when they are consumed. They are indirect taxes. The amounts vary according to consumption expenditures; person, using more taxed properties, pays more tax compared to others. (Öncel, Kumrulu, & Çağan, 2014)

Value-added tax is the most modern type of the taxation of expenditure. Here, taxes are levied on the value added to the product at every stage of the production and distribution process. (Öncel, Kumrulu, & Çağan, 2014) In Turkey, the subject of the value added tax is, commercial, industrial, agricultural and professional delivery of goods which are made within the framework of activities, services, and which are all kinds of goods and services imports. (Öncel, Kumrulu, & Çağan, 2014)

With the introduction of robots into the service sector, the application of Value Added Tax to robotic technology can be discussed. The use of many robotic technologies has begun to service at shopping centres, airports and banks. To use AI and robotic technology in the health sector, is becoming a frequent solution in research and diagnostics. In this respect, it may also be possible to take VAT through robotic technology in the framework of the service provided. For this, the processes should be carried out in Turkey and the delivery and services must be within the framework of self-employed, commercial, industrial, agricultural operations of . 

The taxation is deemed to be occured if the delivery of goods and services are realized. The person with the tax liability adds tax to the price of taxable goods and services and confers liability to the customer Therefore, it is possible to apply the Value Added Tax (VAT) in terms of persons who produce and benefit from robotic technology services. 


Robots and artificial intelligence have now become an unchangeable part of our lives  Change in the business processes and transforming the professions of these technologies, has begun to create huge changes and devastations in employment. In order for human workers, who are losing their jobs to robots, to be involved in the process, legal arrangements of governments are necessary to be adapted the for these developments. Moreover, the fact that, companies are adapting to automation, causes decreasing tax revenues of governments. In this respect, it will be necessary to go ahead with tax legislation in order to ensure that people are trained and acquire new skills in the face of this technology, and that governments should balance their tax revenues. 


Selin Cetin

Artificial Intelligence, Data Security and GDPR


Artificial Intelligence, Data Security and GDPR



Among the prominent features of artificial intelligence and machine learning, which are now being used in many sectors, is the ability to analyze data much faster from programmatic tools and from human beings as well as to learn how to manipulate data on its own.

In recent years, profiling and automated decision-making systems, which are frequently used in both public and private sectors, have brought benefits to individuals and corporations in terms of increased productivity and resource conservation, as well as bringing about risks. The decisions made by these systems which affect the individual and the complex nature of the decisions, cannot be justified. For example, artificial intelligence can lock a user into a specific category and restrict it to the suggested preferences. Hence, this reduces their freedom to choose specific products and services, such as books, music or news articles. (Article 29 Data Protection Working Party, WP251, sf.5)

GDPR, which will come into force in Europe in May, has provisions on profiling and automated decision making, to prevent from being used in such a way as to have an adverse effect on the rights of individuals. GDPR defines profiling in Article 4 as follows: “Any form of automated processing of personal data consisting of the use of personal data to evaluate certain personal aspects relating to a natural person, in particular to analyze or predict aspects concerning that natural person’s performance at work, economic situation, health, personal preferences, interests, reliability, behaviour, location or movements.” (WP251, sf.6)Profiling is used to make predictions about people, using the data obtained from various sources on those people. From this point of view, it can also be considered as an evaluation or classification of individuals based on characteristics such as age, gender, and weight.

Automated decision-making is the ability to make decisions with technological tools (such as artificial intelligence) without human intervention. Automated decision-making can be based on any type of data. For example, data provided directly by the individuals concerned (such as responses to a questionnaire); data observed about the individuals (such as location data collected via an application); derived or inferred data such as a profile of the individual that has already been created (e.g. a credit score).

There are potentially three ways in which profiling may be used:

(i) general profiling;

(ii) decision-making based on profiling; and

(iii) solely automated decision-making, including profiling (Article 22).

The difference between (ii) and (iii) is best demonstrated by the following two examples where an individual applies for a loan online: a human decides whether to agree the loan based on a profile produced by purely automated means(ii); an algorithm decides whether the loan is agreed and the decision is automatically delivered to the individual, without any meaningful human input (iii). (WP251, sf.8)

The important questions to be encountered here are:

-How does the algorithm access this data?

-Is the source of data correct?

-Does the decision of the algorithm cause legal effects on the person?

-Can the individuals have some rights over the decision based on automated process?

-What measures should the data controllers take in this case?

Nowadays, most companies are able to analyze their customers’ behaviors by collecting their datas. For example, an insurance company can determine insurance premiums by tracking driving behavior of the driver, through automatic decision making.In addition, profiling and automatic decision-making systems, especially in advertising and marketing applications, can cause effective results on other individuals. Hypothetically, without relying on his/her own payment history, a credit card company can reduce a customer’s card limit by analyzing other customers who live in the same area and who shop at the same store. Therefore, this means that, based on the actions of others, you are deprived of a chance.

Data controller will be held responsible because of mistakes

It is important to note that, mistakes or prejudices in the collected or shared data may lead to evaluations based on incorrect classifications and uncertain outcomes in the automated-decision making process and may have negative effects on the individual. Decisions can be based on out-of-date data or outsourced data can be misinterpreted by the system. If the data used for automated-decision making is not correct, then the resulting decision or profiling will not be correct.

In the face of possible mistakes that may arise in such systems where artificial intelligence and machine learning are used, some obligations will occur for “data controllers”.Data controller should take adequate measures to ensure that the data used or indirectly obtained are accurate and up-to-date.

In addition, the data controller should also take steps to ensure long-term data retention, as data retention times may be incompatible with accuracy and update, as well as with proportionality. Another important issue is that the special categories of personal data are processed and used in these systems.GDPR is seeking the explicit consent in the processing of special categories of personal data.However, in this case, the data controller should remember that the profiling can create special categories of personal data by combining non-special categories of non-personal data with non-special categories of personal data. For example, when a person’s health status can be obtained from food purchase records, food quality and energy content data. (WP251, sf.22)

GDPR also mentions that people, who are affected by automated-decision making with the data used, have certain rights on this situation. Given the transparency principle underlying GDPR, according to Articles 13 and 14, the data controller should clearly explain how the process of profiling or automated-decision making works for the individual.

Profiling may include an estimation component that increases the risk of mistakes. Input data may be incorrect or irrelevant or may be out of context. Individuals may want to query the validity of the data and grouping used. At this point, according to Article 16, the data subject will also have the right of correction.

Similarly, the right to delete in Article 17 may be claimed by the data subject in this context. If there is a given consent to the basis of the profiling and the consent is subsequently withdrawn, the data controller has to delete the personal data of the data subject as long as there is no other legal basis for profiling.

Importance of personal data of children’s

Another point that needs attention about profiling and automated-decision making is, the use of children’s personal data. Children can be more sensitive and more easily affected, especially in online media. For example, regarding the online games, profiling can be used to target players, who are more likely to spend money in their game, as well as to be offered more personalized advertising. GDPR does not distinguish whether the processing is related to children and adults in Article 22. Nevertheless, as children can be easily affected by such marketing efforts, the data controller must be sure to take appropriate measures for children and ensure that they are effective in protecting children’s rights, freedoms and legitimate interests.

As a result, profiling and automated-decision making based on systems such as artificial intelligence and machine learning can have important consequences for the individual. Data collected in connection with this technology, must be collected by the consent of the persons or must be set on a legal ground. Also, it is important to subsequently use these data in connection with the purpose for which they are collected. If the system suddenly starts to make unusual decisions, the data controller should take the necessary precautions and guard the rights and the freedoms of the persons involved, including what roadmaps to follow.

See also:

Yapay Zekâ, Veri Güvenliği ve GDPR

Predictions Of AI and Robotics on 2018

Predictions Of AI and Robotics on 2018



Even if the flying cars did not become an ordinary part of our lives for the present, we have advanced on robotics and AI on 2017. From the e-identity application developed for robots by the European Union, to robot Sophia, a citizen-winning robot, many steps were taken. Although these developments were exciting, they were beunruhigend for some people. Thus, a letter signed by 116 experts from 26 countries sent to United Nations, demanded that the development and the usage of robots capable of killing must be banned.


One of the most memorable cases was a discussion on the development of AI, between Elon Musk and Mark Zuckerberg. Following that case, the fact that AI’s developed by Facebook, created themselves languages were increased uneasiness.


Although there is some confusion and fear, certainly better developments will take place on 2018. In summary some predictions on AI and robotics on 2018 are:


Internet of Things:

The increasing volume of data, with the use of intelligent devices in homes, offices, and even our bodies, will lead to a major shift in the field of information processing and analysis. Development of data analysis for using the data flow efficiently by companies will be a must. The only way to make the best use of it, is to focus on artificial intelligence and machine learning. Therefore, the year 2018 will be a year with the increase use of AI in companies.



Companies have become unable to supply customers’ demands. Therefore, the necessity of utilizing AI chatbots and virtual agencies will increase on 2018. Thus, it is predicted that 85% of customer interactions will be ensured by AI until 2020. And it shows that places of bots in our lives will increase.



All of us know that Google’s AI developed its language when translating. Technologies, which ensured non-stop communicating between languages will continue to develop as well as in 2018. It will be certainly beneficial both for our business and personal life. The way of communicating with people, with whom we do not speak the same language, will be possible.



With the increase of smart factories, we will feel the robotization more and more especially in the industrial field. We will encounter robots in many places, from retail product shipment to door to product delivery. Thanks to the robotization factories, shipment of the ordered products to consumers in the short time will ensure more profits.


Autonomous Cars and Smart Cities

For 2018, one of the biggest predictions is, the increase in number of autonomous cars. Even if continues to worry us about the responsibility of possible accidents, autonomous cars are in our lives. The fact that the data traffic will increase with the intelligence of the vehicles, wills make the cities smart, too. So we will begin feeling the increased use of technology both in terms of vehicles and cities. Thus, we will see the increasing effects on both of them.



Another prediction on AI is about the benefits on medical diagnoses. The research shows that there is great progress in the usage of artificial intelligence, especially at early diagnoses in cancer. In this regard, 2018 will be a year that we will experience significant transformations in the health care of patients.


Face and Voice Recognition

According to some predictions, developments on the technologies of face and voice recognition from 2017 will continue also in 2018. So, our faces will be able to be our credit cards and driving licenses. Therefore, it may be said that, the long queues in the end of the shopping is to vanished, who knows?


Technology continues developing unbelievable fast. Today, where we are, it has started to transform our social life. We can see this from the using of hardware devices and increase in the social media is among our daily habits. 2018 will be a year, in which these developments will continue as long as we use our ideas for good.


Selin Cetin