Record tax penalty for tobacco company from the Ministry of Treasury and Finance

The Tax Inspection Board's audits targeting large taxpayers are ongoing.

Accordingly, a yield analysis and book inventory study were conducted for a company engaged in the manufacturing of tobacco products. While calculations were made taking into account the capacity and operating hours of cigarette production lines, data on the business's natural gas, tobacco, and cigarette filter consumption were also used.

As a result of the yield and book inventory study, it was determined that the company had generated off-the-books revenue. The inspection revealed that some documents at the business were not included in legal ledger records and declarations. It was also determined that although invoices were issued for the cigarettes, special consumption and value-added taxes were not reflected in the declarations.

6 BILLION LIRA TAX PENALTY FOR THE COMPANY

As a result of the inspection, a tax penalty of approximately 6 billion lira was imposed on the company. This figure is expected to rise with late payment interest. The inspection also revealed that corporate tax, special consumption tax, value-added tax, and temporary tax were underpaid.

Minister of Treasury and Finance Mehmet Şimşek also reported that they are prioritizing book and physical inventory and yield analysis studies with the new audit work.

Stating that tax inspectors have launched simultaneous audits of 707 jewelers in 9 metropolitan cities and are conducting physical inventory studies, Şimşek said, "We will continue to implement such audit methods in the coming period. New sectors and companies to undergo yield analysis and physical and book inventory studies are in line. We will continue our efforts in this direction."

Claiming that they will collect 'more tax from those who earn more,' Şimşek noted the following:

"In this context, we are also closely monitoring our large taxpayers. Our audits will continue to increase to cover all sectors. We are determined to increase tax justice by preventing the informal economy. We will direct the improvement in tax revenues to productive areas for the welfare of our citizens and the stability of our country. We will continue to pursue those who gain unfair profits and create unfair competition by causing tax losses and evasion."

News Source: AA