High-profile Turkish celebrities investigated for tax evasion

The Turkish Ministry of Treasury and Finance’s Tax Inspection Board (VDK) has launched investigations into high-profile actors and musicians, uncovering discrepancies between their reported earnings and actual income.

In the first phase of the audit, 150 artists, including Serenay Sarikaya, Mert Demir, Halit Ergenc, Berguzar Korel, Duman, Hadise, Gulsen, and Melike Sahin, were found to have inconsistencies in their tax declarations.

The VDK’s investigations focus on combating the underground economy by increasing oversight of income reports. This initiative targets various sectors, and the entertainment industry has become a significant focus of scrutiny.

Risky discrepancies unveiled in artists’ tax declarations

According to sources from the Treasury and Finance Ministry, tax audits on actors, musicians, and their agencies have revealed that artists expected to be in high-income brackets have significantly underreported their earnings. In some cases, artists appeared to be channeling funds through family members and managers, creating discrepancies between their actual bank transactions and declared income.

The government has employed the Risk Analysis and Research (RADAR) system to examine discrepancies in artists’ tax declarations. The system flagged those artists and agencies that appeared to be concealing income by transferring earnings to accounts of relatives or agents, as well as inconsistencies between earnings and tax filings.

The VDK’s analysis includes a detailed review of digital platform activities, advertising revenue, and other earnings. This marks the first phase of a broader push to ensure tax compliance and combat the underground economy in the entertainment sector.

Investigation reveals over $2.7M of unreported income

The VDK’s analysis has already uncovered alarming findings, including one actor who failed to report over ₺100 million ($2.7 million) in earnings over the course of a single year. The 150 artists flagged in this phase will be invited by tax inspectors to explain the discrepancies in their income declarations.

Following the initial investigations, the tax declarations of artists for the 2024 fiscal year will also undergo thorough scrutiny. The VDK plans to review any irregularities between declared income and expenses, flagging individuals whose expenditures significantly exceed reported earnings.

Tax fairness and increased compliance stressed by finance minister

Turkish Minister of Treasury and Finance Mehmet Simsek emphasized that ensuring tax fairness is a primary goal of the government.

“Our aim is to collect more tax from those who earn more and less from those who earn less. We will direct the improvements in tax revenues toward productive sectors to boost the well-being of our citizens and the stability of our nation,” Simsek stated.

Simsek also stressed that the audits were designed not to punish but to encourage greater tax compliance. He reiterated that the fight against the underground economy would continue across all sectors, with a particular focus on ensuring that high earners report their income accurately and completely.

The investigation is expected to continue to scrutinize various high-earning professionals within the entertainment sector, as authorities aim to reinforce transparency and accountability.