Major tax evasion in e-commerce

According to data from the Ministry of Treasury and Finance, the increase in digital shopping has led to stricter scrutiny of unregistered income in this sector. The Revenue Administration analyzed whether income generated through e-commerce platforms was being reflected in tax returns and identified significant discrepancies.

In examinations covering the years 2021-2022, it was determined that 13 thousand 494 taxpayers left 18 billion liras of income unregistered, while in 2023-2024, 3 thousand 610 taxpayers left 26.5 billion liras of income unregistered. In total, it was revealed that 17 thousand 104 taxpayers left 44.5 billion liras of income untaxed.

STATEMENT FROM MINISTER ŞİMŞEK

Minister of Treasury and Finance Mehmet Şimşek stated that digitalization makes it easier to monitor tax losses, saying, "We are determined in the fight against the informal economy. Everyone who earns income through e-commerce platforms must pay their taxes. We invite all taxpayers who do not want to face tax penalties to update their declarations through voluntary compliance. We will not allow tax losses in a digitalizing world."

DETAILS OF UNREGISTERED INCOME

The analyses also identified individuals trading without any tax registration. For example, it was determined that one person conducted 895 thousand 562 transactions through e-commerce platforms in 2021, generating 135 million liras in income, but failed to declare 122 million liras of this amount.

Tax offices have begun inviting high-risk taxpayers to provide explanations. In the first stage, 3 thousand 147 people complied and declared 2 billion liras of income. Additionally, 276 tax returns were received from 190 non-taxpayers, and a tax base of 83 million liras was declared. Those who correct their declarations as a result of the invitation to explain are subject to lower penalties.

On the other hand, a 1 percent withholding tax began to be applied to payments made in the e-commerce sector as of January 1. Tax audits and legal proceedings will be initiated against those who do not file tax returns or continue to conceal their income.

News Source: 12punto