Aydin Dogan says PM seeks to create "calm and silent Turkey"

"The basis for all this is political," said Dogan chairman of Dogan Sirketler Grubu Holdings, a conglomerate that controls seven newspapers, 28 magazines and three Turkish television channels as well as gasoline, electricity and other energy interests, in his first interview since a tax charge and fine of around $500 million.

The order to Dogan Media Group (DMG), to pay 826.3 million Turkish lira ($490 million) came to light last week in a filing by DMG to the Istanbul Stock Exchange. It results from an alleged carriage of receipts from a 2006 sale of a 25 percent share in Dogan TV to a German media group into 2007 as a means to avoid taxation.

Dogan denies dodging taxes, and the company said it will contest the penalties. The levy against Dogan's media group, Dogan Yayin Holding, followed months of increasingly angry denunciations by Erdogan of "made-up news" about corruption, the WSJ said.

Dogan said he initially supported many policies of Justice and Development Party (AKP), particularly its push to get Turkey into the European Union. Erdogan "has changed", veering away from early efforts to make Turkey more open and tolerant, WSJ quoted Aydin Dogan as saying.

"Mr. Erdogan came to power using democracy. He is a product of democracy, but he can accept democracy only for himself," said Dogan, the WSJ reported. "He cannot accept side components of democracy such as free media."

Most of the levy relates to money earned by Dogan media from the sale of a stake to German media group Axel Springer AG, Dogan also told the WSJ.

"Opposition politicians and free-press campaigners have condemned the government over the affair. Critics accuse Erdogan of adopting tactics similar to those used by Russian leader Vladimir Putin, who dismembered independent media group Media-Most and silenced other critical voices by deploying tax inspectors and other state functionaries to combat alleged economic crimes," the WSJ wrote in its report.

Dogan said seven of his companies are being investigated by tax inspectors. Relations with the government, he said, first "went haywire" early last year when his media outlets reported on the business dealings of Erdogan's son and the wife of another son, the report added.

"He could not put up with this and wanted to silence us. We refused to accept silence. The situation with the government got out of control," Dogan was quoted as saying.

Dogan said Erdogan's boycott calls only boosted circulation, but added that the prime minister's anger has branded his various companies with an "X" that makes it difficult to do business, the WSJ reported.

"All our business is tied up in red tape," he said, "Everything is delayed." Projects on hold include plans to build an oil refinery by Petrol Ofisi AS, majority owned by Dogan's group, the report added.

Dogan said he and Erdogan have not spoken since 2006, though they did shake hands late last year at a wedding, WSJ also said.