Türkiye launches major tax audits targeting large companies

Türkiye’s Minister of Treasury and Finance, Mehmet Simsek, has announced an extensive audit program targeting large companies across the country.

He emphasized the government’s commitment to tax fairness and efficiency, stating that they are committed to supporting honest taxpayers while also keeping a close watch on those who earn substantial profits but pay minimal taxes.

In an interview with the Anadolu Agency (AA), Simsek discussed new initiatives aimed at combating the informal economy. He indicated that ministry departments are continuously working in this area, noting that teams of tax inspectors under the Tax Audit Board (VDK) are preparing for an intensive audit program focused on large companies nationwide.

Focus on social media revenue, risk analysis

Simsek highlighted that risk analysis studies will involve hundreds of thousands of taxpayers and will utilize machine learning techniques. Approximately 3,400 large companies identified as high-risk will be invited to provide explanations.

The topics under scrutiny will include the improper application of inflation adjustment provisions that undermine tax bases, the generation of unreported revenue, and the use of third-party IBAN accounts for collecting payments instead of official business bank accounts.

Other issues to be addressed include the lack of withholding on profit-sharing payments and the incorrect application of exemptions and deductions, totaling nearly 30 different concerns.

Notably, the failure to declare income from social media will also be questioned. Initial calculations indicate that the large companies invited to explain their tax positions have under-reported tax bases by ₺23 billion for the relevant periods.

Protecting honest taxpayers

Minister Simsek stated that the invitations for explanations aim to recover billions of lira in taxes for the public treasury. Taxpayers who provide satisfactory explanations will be spared the burdens of a tax audit.

He cautioned that those who do not respond or whose responses are deemed insufficient will be subject to tax audits. He reiterated the commitment to ongoing efforts targeting large companies to ensure fairness and efficiency in taxation while providing support to honest taxpayers.

He concluded by emphasizing that inspections will increase across all sectors to combat informality, stating that the government aims to ensure tax fairness while protecting compliant and honest taxpayers from competitive disadvantages.