Treasury takes action: New regulation for those living in luxury while hiding income

New details continue to emerge regarding the tax reform package that the AKP government is working on.

According to the draft, those who report low income but live in luxury will be summoned by the Treasury and asked for an explanation. As a result of the risk analysis to be conducted by the Treasury, taxpayers with a discrepancy of over 20 percent between their declared income and their expenditures will be required to submit a 'Special Expenditure Statement.' Those who cannot explain the difference will be required to pay taxes on that amount.

According to a report by Erdoğan Süzer from Sözcü, it is also expected that tax audits will be initiated against those who cannot explain their luxury expenditures. A 'taxpayer account card' will be created to be used in identifying the discrepancy.

LUXURY REAL ESTATE WILL ALSO BE EXAMINED

The regulation is expected to be implemented through a 'taxpayer account card' that allows for the visibility of taxpayers' expenditures and income. This provision is planned to enter into force on January 1, 2025, to be applied to 2024 earnings.

Once the regulation is enacted, taxpayers who fall under the Treasury's radar will be questioned about how they financed their luxury real estate and vehicle purchases, high rent and maintenance payments, and expensive educational expenses for their children, in relation to their declared income.

News Source: 12punto