Minister Şimşek announces tax audit update: Electronic tax era begins

Minister of Treasury and Finance Mehmet Şimşek explained how the new system will work, stating that they will establish the infrastructure to move audit processes entirely to an electronic environment. "With the new system, tax inspectors and taxpayers will come together in an electronic environment, meetings will be held in this environment, and minutes will be taken electronically," he said.

Stating that new technological systems will strengthen the ministry's hand in the fight against the informal economy, Şimşek said, "A serious digital transformation is targeted within one year with developments such as electronic minutes, teleconference applications, machine learning, and artificial intelligence integrations."

'OBLIGATION TO TAKE MINUTES HAS NOT ENDED'

Stating that books and documents can already be presented to inspectors electronically, but that inspectors and taxpayers must come together in all circumstances to complete the examinations, Şimşek said that the obligation to take minutes on paper has not ended even in cases where taxpayers cannot be reached.

Şimşek announced that with the new step, all minutes prepared on paper, such as tax examination minutes, will be taken into an electronic environment using e-signatures, and explained that a 100 percent digital audit unit has been created by reducing expenses arising from paper, toner, and printer usage to zero.

Pointing out that the Tax Inspection Board (VDK) has audit buildings in 9 major provinces, Şimşek continued his words as follows:

'TIME AND TRANSACTION COSTS WILL BE REDUCED'

"Audits were mostly carried out in places where these buildings are located, with the participation of taxpayers. With the designed system, in-house video conferencing and electronic meeting applications will be put into effect, and there will be no need for taxpayers to physically come to audit units. Meetings with inspectors and the taking of minutes will be carried out in an electronic environment. With these facilities, taxpayers will be provided with the convenience of fulfilling their legal responsibilities from where they are. For example, the obligation for taxpayers located abroad to return to the country just for an audit will be eliminated. Thus, the time and transaction costs incurred by taxpayers in terms of tax compliance will be reduced."

'ORGANIZATION AND REPRESENTATION EXPENSES WILL DECREASE'

Drawing attention to the fact that the system will pave the way for inspectors to audit taxpayers all over the country without the need for travel, Şimşek said, "Thus, it will be easier for the workforce to focus on audits in certain cities according to need without changing locations. In this way, while travel and accommodation expenses are reduced, it will be ensured that public service can be provided uninterruptedly even in extraordinary situations. With the transfer of meeting, training, and conference processes entirely to an electronic environment, organization and representation expenses will decrease."

Stating that the risks that will arise due to the localization of the audit will also be eliminated by bringing inspectors and taxpayers in different cities together in an electronic environment, Şimşek concluded his words as follows:

'INCREASE IN COMPLIANCE IS FORESEEN'

"Thanks to the new system, it will also be possible to carry out settlements in an electronic environment with e-settlement, and for taxpayers to provide explanations within the scope of the invitation to explain institution in an electronic environment with e-explanation. It is foreseen that the training requests of external institutions will be met in an electronic environment, and tax awareness and voluntary compliance with taxes will be increased with electronic and distance training to be given to various sectors."