Those sharing IBANs panic: Reports pouring in

The Ministry of Treasury and Finance's first initiative within the scope of its fight against the informal economy to prevent tax loss and evasion has focused on those who make payments via IBAN. Minister Mehmet Şimşek had previously announced that they had launched a study and investigation into those collecting payments via IBAN.

With the Finance Ministry beginning its work on IBANs, businesses and individuals collecting payments via IBAN have started to be reported by citizens. Officials point out that the issue of IBAN usage has become widespread, with IBAN account leasing having turned into almost an entire industry.

FOR THE FIRST TIME

Sworn-in Certified Public Accountant Abdullah Tolu answered questions from ntv.com.tr on the subject. Tolu explained that IBAN accounts are being subjected to such audits for the first time, stating:

"It is extremely normal for these to be questioned from a tax perspective. Through the audits to be conducted, the leasing of IBAN accounts and the illegal use of IBAN accounts can be prevented. As a result of these audits, a significant amount of resources consisting of taxes and tax penalties could be transferred to the treasury."

Stating that the Finance Ministry is trying to identify tax loss and evasion, Tolu noted that IBANs are being used heavily for the sale of goods and services, adding: "The Finance Ministry has determined that payments for the sale of goods and services are being collected heavily via IBAN rather than credit cards, that some of these IBANs are registered in the names of the businesses making the sales, while others are in the names of people working at these businesses or the spouses, friends, and relatives of business owners, and that some IBANs are being rented from other individuals."

IBAN COLLECTIONS IN "FORTUNE TELLING"

Explaining which sectors see the most collections via IBAN, Tolu said: "This is most common among businesses selling retail goods and services, furniture stores, night entertainment venues such as casinos, bars, and pavilions, luxury restaurants, beauty and hair transplant centers, gyms, those selling gold, diamonds, and other precious stones, as well as astrologers, fortune tellers, doctors, lawyers, dietitians, architects, etc."

WHY IBAN?

Tolu stated that businesses prefer IBAN to avoid credit card commissions or taxes, and shared a point that is often overlooked:

"However, there is one issue they overlook or are unaware of: Banks share the transactions they perform with the Finance Ministry. It is impossible for money movements in the banking system to be outside the knowledge of the Finance Ministry."

Expressing that the Finance Ministry will hold them accountable, Tolu used the following words:

"The Finance Ministry will call in business owners identified as collecting payments via IBAN one by one to request an explanation, and will ask whether they have issued invoices or similar documents for the payments made via IBAN and will request the presentation of these documents. If an invoice or similar document has been issued for these collections, there will be no problem. If not, these sales will be considered informal sales. Furthermore, business owners will also be questioned about collections made with IBANs belonging to people considered related parties (close relatives such as spouses, children, mothers, fathers, as well as business employees such as secretaries or workers) and rented IBAN accounts. The Finance Ministry has also identified those who sell goods and services and collect payments via IBAN despite not being tax taxpayers. The Finance Ministry will also call these individuals in and request an explanation."

WHAT WILL THE PENALTY BE?

Tolu also provided information regarding the penalty to be imposed on those collecting payments via IBAN:

"For those who collect payments via IBAN but do not issue invoices or similar documents, or who conduct these businesses without registering as taxpayers, income tax, corporate tax, and temporary tax assessments will be made over the earnings they left off the books, and VAT assessments will be made over the sales they left off the books. A 1-fold tax loss penalty will be imposed, and in addition, default interest will be requested. Furthermore, a special irregularity penalty of up to 10 percent of the amount that should have been written on the invoice will be imposed."

IBAN LEASING IS AN INDUSTRY

Stating that it has been determined that IBANs are being rented to third parties, Tolu expressed that the people who rent out their IBANs are unaware of the millions of TL flowing into their accounts.

Tolu concluded his remarks as follows:

"Legal proceedings will also be taken against them; penalty-bearing income tax, temporary tax, and VAT assessments will be made over the rental fees they collected, a 1-fold tax loss penalty will be imposed, and additionally, default interest will be requested. Furthermore, these individuals will be referred to public prosecutors due to these transactions that are contrary to MASAK (Financial Crimes Investigation Board) legislation."

News Source: 12punto