A new era in tax audits before penalties: Taxpayers to get correction opportunity
With the Tax Inspection Board's (VDK) new practice, taxpayers will be able to view requested documents electronically and make corrections before an audit begins.
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The Ministry of Treasury and Finance's Tax Inspection Board (VDK) is preparing to launch a new practice in tax audits. With the system called the "Audit Preparation File" (VDK-İHD), the goal is to both strengthen the electronic audit infrastructure and provide taxpayers with the opportunity for preparation and correction before an audit.
According to information obtained from the Ministry, the practice was developed in accordance with Turkey's audit needs, based on the Organisation for Economic Co-operation and Development's (OECD) Standard Audit File for Tax methodology. The system will standardize the information and documents requested during tax audits.
In the new structure, taxpayers will be able to see which information and documents are expected from them electronically before the audit begins. The prepared information and documents will also be transmitted to the VDK in standard formats. This aims to prevent the repeated preparation of the same documents in different formats.
Contribution expected to VAT refund audits
The practice is expected to accelerate the process, especially in VAT refund audits. It is stated that by having the documents and information required for refund files prepared completely and in a standard format in advance, correspondence due to missing documents and repetitive information requests will decrease.
VDK-İHD is also designed as a taxpayer guidance platform. The application, which will be used via the Petition and Information Submission System, will include user-friendly screens, step-by-step wizards, explanation boxes, guides, upload manuals, and training videos.
The system is expected to contribute to computer-aided analysis and automation processes, helping tax audits to be completed in a shorter time. Additionally, taxpayers will be allowed to submit corrections before inspectors begin their audit.
Minister of Treasury and Finance Mehmet Şimşek stated that the practice aims to increase voluntary tax compliance, saying, "With this practice, we are taking a revolutionary step in tax audit processes while rapidly implementing OECD audit standards. Our goal is to increase our taxpayers' voluntary compliance with taxes and make their work easier before issuing penalties."