11 more articles of the tax regulation accepted

Deliberations on the Draft Law on Amendments to Tax Laws and Certain Other Laws continue in the TBMM General Assembly.

11 more articles of the proposal have been accepted in the General Assembly.

According to the accepted articles, the tax loss penalty will be increased by 50 percent in cases where a tax loss is caused by engaging in unregistered activities without establishing a tax liability outside the knowledge of the tax office. The same increase provision will also apply to tax loss penalties to be imposed due to subsequent assessments regarding the same tax type and period.

According to the amendment made to the "special irregularities and penalties" provision in the Tax Procedure Law, an increasing penalty application will be introduced to increase deterrence in cases where more than one special irregularity penalty is imposed within a calendar year in accordance with the relevant provisions. On the other hand, a new schedule containing penalties for taxpayer groups and related irregularities will also be added to the provision.

In this context, it is envisaged that the amounts of some penalties will be re-determined to increase deterrence, in addition to being increased annually at the revaluation rate. An increasing penalty application will be introduced to increase deterrence in cases where more than one special irregularity penalty is imposed within a calendar year.

A special irregularity penalty of 2 times will be imposed on those who issue documents outside the scope of the law; however, if this situation is reported within 5 business days by those who are required to receive the document or by the parties to the transaction subject to the document before it comes to the administration's knowledge, a special irregularity penalty of 6 times will be imposed on those who issue documents outside the scope of the law.

If those who are required to issue the documents listed in the law do not fulfill their obligations, no penalty will be imposed on these individuals if this situation is reported to the administration within 5 business days by the parties to the transaction subject to the document, while a special irregularity penalty of 3 times will be applied to those who do not issue the documents or issue them incompletely or misleadingly.

With the proposal, a schedule regarding the penalty amounts to be applied in the envisaged increasing penalty application will be added to the law.

PENALTIES ARE BEING RE-DETERMINED

With the regulation, the lower limit of the special irregularity penalty imposed on notaries who certify papers for which stamp duty has not been paid without collecting the tax and penalty, or who extract and provide copies of them, will be set at 40 Turkish Liras for each paper.

While penalties for those who do not comply with the relevant provisions of the Tax Procedure Law are increased annually at the revaluation rate, the regulation aims to increase their deterrence by re-determining these penalties.

A special irregularity penalty will be imposed on those who do not comply with the obligations brought in accordance with the provision regarding the collection of information within the scope of the information exchange provisions of international agreements to which Turkey is a party.

In cases where all kinds of digital environments, including the internet, as well as electronic commerce, are used for economic and commercial purposes such as advertising, announcements, sales, and leasing, the special irregularity penalty to be applied in case those who are burdened with the obligation to provide information do not make a notification regarding these obligations or make their notifications incompletely or misleadingly, in order to ensure tax security, will be proportional to the economic and commercial size of these taxpayers.

The special irregularity penalty applied to those who are within the scope of the obligation to document payments but do not comply with this obligation will also be increased. If those who make payments without complying with this obligation report the situation within 5 business days before it comes to the administration's knowledge, no penalty will be imposed.

In cases where collections regarding the delivery of goods or provision of services are made using the name or account of others through banks and similar financial institutions, payment institutions, or PTT, a special irregularity penalty of 10 percent of the amount subject to the transaction will be imposed separately on those who perform the delivery of goods or provision of services and those on whose behalf or account the payment is made, provided that it is not less than the penalties applied according to this provision for each transaction. The total amount of special irregularity penalties to be imposed within a calendar year in accordance with this provision cannot exceed 20 million liras.

Except for cases permitted under the Bank Cards and Credit Cards Law, in cases where collections made using credit cards, bank cards, prepaid cards, QR codes, electronic wallets, and similar payment instruments are made through payment systems or devices not registered in the name of the taxpayer's own liability, 3 times the special irregularity penalty determined according to this provision will be applied separately for each transaction to the taxpayers who make the collection and those who allow the use of these systems or devices registered in their own name. The total amount of special irregularity penalties to be imposed within a calendar year in this context cannot exceed 20 million liras.

If the requested collateral is not provided or completed on time, a special irregularity penalty equal to the amount of collateral that should have been provided or completed under the provision will be imposed on those who do not provide or complete the collateral.

For taxpayers who produce or import devices and systems such as electric, electronic, magnetic, and similar devices and systems whose qualifications are determined or approved, which are required to be used to ensure tax security, or who provide various services to these devices, such as cash register manufacturers or importers, and secure service providers, banks, electronic money institutions, payment institutions, charging network operation license holders, and those authorized to provide services for any of the creation, signing, transmission, and storage of electronic books, documents, and records, as well as those who provide, deliver, or sell programs such as ordering, sales, accounting, and stock tracking, a penalty of 10 times the special irregularity penalty included in the provision will be imposed for each detection for those who act contrary to the matters that must be done, not done, or fulfilled by them. The total amount of special irregularity penalties to be imposed within a calendar year in accordance with this provision cannot exceed 20 million liras.

If a single act within the scope of this provision requires more than one penalty requiring a special irregularity penalty included in the relevant provision of the Law, the heaviest of these penalties will be imposed.

OVERTIME PAY FOR GIB PERSONNEL

With the proposal, the tax principal will be removed from the scope of settlement in order to increase voluntary compliance with taxes. The provisions in this scope in the Tax Procedure Law will be repealed.

Overtime pay will be paid to the personnel of the Revenue Administration (GİB) who actually work outside of normal working hours and outside the office, in an amount calculated by multiplying the indicator figure of 160 by the civil servant monthly coefficient for each hour they work in this manner. This payment will not be subject to any tax or deduction, excluding stamp duty. The overtime pay that can be paid for each personnel cannot exceed 50 hours per month, and the number of personnel who can be paid overtime pay cannot exceed 20 percent of the total number of civil servants and contracted personnel in the provincial organization staff and positions of the Administration.

Existing settlement applications will be concluded according to the provisions of the Tax Procedure Law before it was amended.

VAT exemption and deduction for services such as leasing and maintenance provided in marinas for sea transport vehicles used in non-commercial activities such as travel, entertainment, and sports will be abolished.

After 11 more articles of the proposal were accepted, TBMM Deputy Speaker Bekir Bozdağ adjourned the session. After the break, as the commission did not take its place, Bozdağ closed the session to reconvene at 14:00.

News Source: AA