New measure against the informal economy! 3,400 companies invited to provide explanations!

Minister of Treasury and Finance Mehmet Şimşek is sharing progress with the public during a period in which all sectors are being brought under audit. Announcing last week that athletes were being subjected to audits, Şimşek announced this week that the audit process for large companies has begun. Touching upon the new steps to be taken within the framework of the fight against the informal economy, the Minister stated that teams consisting of tax inspectors affiliated with the Tax Inspection Board (VDK) are preparing an intensive audit program for large companies across the country. It was stated that the audits will be carried out in 31 provinces, primarily in Istanbul, Ankara, Izmir, Adana, Bursa, and Konya, in the first stage.

SOCIAL MEDIA INCOMES WILL ALSO BE EXAMINED

Stating that risk analysis studies covering hundreds of thousands of taxpayers, which also utilize machine learning analysis, are being conducted, Şimşek continued his words as follows:

'3,400 LARGE COMPANIES WILL BE INVITED TO PROVIDE EXPLANATIONS'

"3,400 large companies evaluated as risky will be invited to provide explanations. Among the issues for which taxpayers will be invited to provide explanations is the application of inflation adjustment provisions in a way that erodes the tax base contrary to legislation. Obtaining unregistered revenue and collecting payments through third-party IBAN accounts instead of the business's own bank account number will also be among the issues that will be asked of taxpayers.

There are nearly 30 different issues among the topics for invitation to explanation, such as failure to withhold tax from dividend payments and the incorrect application of exemptions and deductions. In this context, the failure to declare social media income will also be questioned. According to initial calculations, it has been determined that the large companies to be invited to provide explanations have under-declared a tax base difference of 23 billion liras for the relevant periods."

Minister Şimşek stated that as a result of the invitation to provide explanations, it is anticipated that billions of liras in taxes to be calculated over the specified tax base will be recovered for the public, and said that taxpayers whose explanations are deemed sufficient will be relieved of the burden that tax inspection processes would bring.

'WE STAND WITH THE HONEST TAXPAYER'

Pointing out that those who do not provide an explanation and those whose explanations are not deemed sufficient will be referred for tax inspection, Şimşek noted the following:

"Within the framework of our principle of justice and efficiency in taxation, we are continuing our work in the field targeting large companies. While we always stand by the honest taxpayer, we do not stop tracking the taxpayer who earns a lot but pays little tax. Our audits will continue to increase in all sectors to ensure justice in taxation by preventing informality. While ensuring justice in taxation by preventing informality, we also protect the honest and tax-compliant taxpayer against competitive inequality."

News Source: 12punto