Tax authorities track those earning income from luxury yacht sales: 'We are knocking on the doors of those who earn a lot but pay little tax'

According to information obtained from the Ministry of Treasury and Finance, the Revenue Administration is closely monitoring taxpayers who earn high incomes and engage in luxury consumption but do not pay appropriate taxes.

As part of the fight against the informal economy, the Revenue Administration, which closely monitors luxury spending in tourism regions, has placed private yacht and boat sales under investigation.

The Administration, which cross-checks data obtained from the Ministry of Transport and Infrastructure and information acquired through international information exchange with its own data, has identified a high amount of tax loss in the majority of sales between 2021 and 2023. Focusing on high-risk taxpayers, the Administration determined that over 45 thousand private boat and yacht sales were made during these 3 years.

Examining the insurance data and hull values of these luxury vehicles, the Administration determined through its analysis and field studies that the sales were not reflected in declarations at their actual value.

1.4 BILLION LIRAS IN UNRECORDED REVENUE

The analyses revealed a large discrepancy between the declared sales price and the actual sales price in private boat and yacht sales by 15 thousand individuals and 1,527 companies. While the money transfers of these taxpayers are being investigated, initial findings indicate 1.4 billion liras in unrecorded revenue.

Meanwhile, according to the Income Tax Law, gains arising from the disposal of vehicles such as ships and yachts within 5 years are considered capital gains. Taxation is applied to the difference between the acquisition cost and the sales price for those who dispose of yachts and boats within 5 years from the date of purchase. If these sales are considered commercial income, both income or corporate tax and VAT on the sales price must be collected.

'WE ARE KNOCKING ON THE DOORS OF THOSE WHO EARN A LOT BUT PAY LITTLE TAX'

Minister of Treasury and Finance Mehmet Şimşek, in his assessment of the matter, said, "We continue to knock on the doors of those who earn a lot but pay little tax. Our fight against the informal economy is expanding sector by sector. As a result of the investigations, the necessary taxes and penalties will be demanded from those who show sales prices as lower than they are."

Stating that the work carried out by the Revenue Administration in this area will continue and that new audit methods will be put into effect, Şimşek noted the following:

"We are intensively continuing our sectoral field audits to eliminate unfair competition and tax loss caused by informality. We will continue to closely monitor those who spend a lot with untaxed income, and those who engage in luxury spending but show a low tax base. We are pursuing unrecorded earnings. Our fight against informality is not slowing down in order to increase justice and efficiency in taxation."

News Source: 12punto