New regulation on tax penalties: Settlement threshold has been set

The Revenue Administration of the Ministry of Treasury and Finance has made an important regulation regarding the reduction and settlement process for tax penalties. With the communiqué published in the Official Gazette, the authorities of settlement commissions regarding tax loss, irregularity, and special irregularity penalties have been redefined. This regulation directly concerns taxpayers awaiting reductions in tax penalties.

SETTLEMENT COMMISSIONS RESTRUCTURED

According to the new regulation, requests exceeding the authority of the tax office-affiliated tax office or property directorate settlement commissions will be examined by the relevant provincial directorate settlement commission. Other requests exceeding authority will be concluded by the Tax Offices Coordination Settlement Commission or the Central Settlement Commission, respectively. The commission where the settlement meeting will be held will be determined by taking into account the amount of tax loss, irregularity, and special irregularity penalty stated in the tax-penalty notice.

COMPETENT COMMISSION DETERMINED IN CASE OF MULTIPLE PENALTIES

In the event that multiple tax loss penalties are issued, the competent commission will be determined according to the tax-penalty notice containing the highest penalty amount. In order to ensure unity in settlement, requests regarding other tax-penalty notices will also be discussed by the commission determined according to the highest penalty amount.

SETTLEMENT THRESHOLD SET AT 40 THOUSAND LIRAS

In the new regulation, whether irregularity and special irregularity penalties fall within the scope of settlement will be determined by taking into account the threshold on the notification date of the tax-penalty notice. For the year 2026, this threshold has been set at 40 thousand Turkish liras. In other words, settlements can be made for penalties of 40 thousand liras and below.

NEW REGULATION FOR SETTLEMENT REQUESTS IN TAX LOSS PENALTIES

In cases where a settlement request is made for irregularity and special irregularity penalties along with tax loss penalties for the same year or different years, the competent settlement commission will be determined according to the tax loss penalty amount. Whichever settlement commission has the authority, that commission will also discuss the requests regarding other penalties.

REVENUE ADMINISTRATION TO DETERMINE

The amounts of tax loss, irregularity, and special irregularity penalties for which settlement commissions can reach a settlement will be determined by the Revenue Administration by provinces or groups of provinces.

News Source: 12punto