The Ministry of Finance has closely monitored luxury yachts and boats: a tax loss of 1.4 billion lira was revealed.

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The Ministry of Treasury and Finance has started monitoring luxury yacht and boat sales as part of its investigations into taxpayers who "earn a lot but pay little tax," and in this context, it has identified a tax loss of 1.4 billion lira from sales between 2021-2023.

According to information obtained by AA correspondent from the Ministry, the Revenue Administration is closely monitoring taxpayers who earn high incomes, engage in luxury consumption, but do not pay taxes accordingly. As part of the fight against the informal economy, the Revenue Administration is closely tracking luxury expenditures in tourism regions and has put private yacht and boat sales under scrutiny. The Administration, which cross-references data obtained from the Ministry of Transport and Infrastructure with information acquired through international data exchange, has detected a significant amount of tax loss in the majority of sales from 2021-2023. Focusing on risky taxpayers, the Administration has determined that over 45,000 private boat and yacht sales occurred in the mentioned three years.

SALES DID NOT REFLECT TRUE VALUES IN DECLARATIONS

The Administration, which also examines the insurance data and market values of these luxury vehicles, has determined through its analyses and field studies that the sales did not reflect true values in the declarations. The analyses revealed a significant difference between the declared sales price and the actual sales price for 15,000 real persons and 1,527 companies involved in private boat and yacht sales. While the money transfers of these taxpayers are under investigation, initial findings indicate that 1.4 billion lira of unregistered revenue has been identified. Meanwhile, according to the Income Tax Law, profits arising from the disposal of vehicles such as ships and yachts within 5 years are considered capital gains. Taxation is applied on the difference between the purchase costs 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 must be collected on the sales price as well.

"NEW AUDIT METHODS WILL BE IMPLEMENTED"

Minister of Treasury and Finance Mehmet Şimşek, in his evaluation regarding the issue, stated, "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, necessary taxes and penalties will be demanded from those who underreport sales prices." Şimşek noted that studies conducted by the Revenue Administration in this area will continue and that new audit methods will also be implemented, adding: "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, those who engage in luxury spending but underreport their tax base. We are after unregistered income. Our fight against informality continues unabated to increase fairness and efficiency in taxation."