Finance Ministry takes action: Daily and weekly revenue of businesses will be determined

The Finance Ministry has taken action in the new term to ensure that 'those who earn more pay more tax'.

The implementation communiqués for the Omnibus Law, which was enacted last August, have been finalized. According to the communiqué prepared by the Revenue Administration, businesses that generate high income but report low annual revenue will be placed under scrutiny. The Finance Ministry will conduct monthly inspections at these companies.

DAILY AND MONTHLY REVENUE OF BUSINESSES WILL BE DETERMINED

According to the report by Dilek Güngör from Sabah, the ministry will determine the daily and monthly revenue of those businesses. If the revenue declared by the company is lower than the revenue determined by tax inspectors, the taxpayer will be invited to provide an explanation. The taxpayer who receives the notification must provide an explanation to the commission within 30 days. If the amount declared in the explanation is found to be correct, the taxpayer will not be referred for a tax audit or to the appraisal commission. If the explanation is not found sufficient, a 20 percent penalty and interest for the past period will be demanded from the taxpayer.

The Revenue Administration (GİB) has prepared the draft communiqués regarding Law No. 7524, which was published in the Official Gazette on August 2. The Draft General Communiqué on Income Tax includes details on how the revenue audit practice will be carried out. The practice will begin on January 1, 2025. To determine the daily revenue amounts of those who are taxpayers due to their commercial or professional activities, the Finance Ministry will conduct inspections at least three times a month and no fewer than twelve times in a calendar year. It will take the average of the daily revenue amounts and calculate the monthly revenue amount.

INVITATION TO PROVIDE AN EXPLANATION

The average monthly revenue amount will be multiplied by the number of months in operation to determine the taxpayer's revenue for the relevant calendar year. The subject was explained in detail in the GİB's communiqué. For example, a luxury restaurant operator operates 7 days a week for 12 months. They report their annual gross sales to the Finance Ministry as 5 million TL. However, in the 4 inspections conducted per month, the Finance Ministry determines that this business's monthly revenue is on average 1.2 million TL, and its 12-month revenue is over 15 million TL. In such a case, since a revenue more than 3 times the declared 5 million TL has been determined, the taxpayer will be invited to provide an explanation.

Similarly, if a taxpayer engaged in the jewelry business operates seven days a week for 12 months and reports an annual gross sales amount of 25 million TL to the administration, but the Finance Ministry's inspections determine their monthly sales to be 3-3.5 million TL and their annual sales to be 39 million TL, this business will also be invited to provide an explanation.

MINISTER MEHMET ŞİMŞEK HAD WARNED

It is determined that an aesthetician who reported an annual gross revenue of 30 million TL earns an average of 5 million TL per month during inspections conducted by Finance Ministry inspectors at the workplace, and their annual revenue exceeds 50 million TL. In this case, an explanation will also be requested from the taxpayer. If they cannot provide one, a penalty will be applied.

Treasury and Finance Minister Mehmet Şimşek had listed some professional groups that report low earnings despite earning a lot, relative to their tax bases. Minister Şimşek stated that the average monthly tax base declared by a jeweler is 16 thousand 46 lira, 27 thousand 376 lira for doctors, and 17 thousand 805 lira for lawyers, and said, "We will obtain authority in all these areas. We will go and perform revenue determination. Then we will ask for an explanation from those who make declarations contrary to that revenue. If these explanations are not satisfactory, we will do what is necessary."

News Source: 12punto