Audits on rental income tighten: Penalties on the way for 700,000 taxpayers

Minister of Treasury and Finance Mehmet Şimşek evaluated the audit efforts conducted following the end of the declaration period for rental income. 

Reminding that the Revenue Administration (GİB) has implemented numerous measures since the beginning of the year to identify those who do not declare rental income, Şimşek emphasized that residential rents above a certain amount, short-term rentals, and commercial property rents must be collected through bank accounts.

REMINDER MESSAGE SENT

Minister Şimşek stated that as a result of the checks, information and reminder messages were sent to approximately 700,000 taxpayers identified as having rental income, both before and during the income tax declaration period. 

He also noted that physical audits were launched on 1.5 million residences to identify taxpayers who rent out their properties but whose income does not appear in bank records.

As a result of these comprehensive efforts, tax office officials conducted physical inspections at more than 400,000 addresses, and tax and penalty notices totaling approximately 153.4 million liras were issued for taxpayers summoned to tax offices for failing to file a declaration. 

During this process, 46,000 taxpayers complied by filing voluntary declarations, reporting 200.7 million liras in income tax.

MORE THAN 23,000 TENANTS SUBMITTED INFORMATION TO THE ADMINISTRATION

Minister Şimşek stated that thanks to the 'Rental Notification Form' added to the Digital Tax Office and GİB Mobile to identify those earning rental income, more than 23,000 tenants have submitted their information to the Administration. He announced that at the end of the declaration period, 1 million 811 thousand taxpayers had filed declarations, reporting a tax base of 399.2 billion liras and 126.9 billion liras in tax.

Stating that SMS messages were sent again to approximately 1 million taxpayers after the declaration period, Şimşek expressed that as a result of these reminders, 95,989 more taxpayers filed declarations, reporting a tax base of 18.3 billion liras and 1.2 billion liras in tax. However, he noted that 700,000 taxpayers who still have not filed declarations have been identified and that these individuals have been reported to the relevant tax offices for penalty proceedings.

Finally, pointing out that these taxpayers have the right to file a declaration by benefiting from the repentance provisions in the Tax Procedure Law, Şimşek said, "If a declaration is filed with repentance, no tax loss penalty is imposed. Taxpayers can file their declarations electronically via the Ready Declaration System and pay their taxes with a debit or credit card."

Emphasizing that efforts to reduce informality will continue, Şimşek stated that the fight against the informal economy will be maintained to ensure tax justice.