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The Revenue Administration is starting its new application today for those who do not pay their tax debts. Accordingly, those whose tax debts are due on December 31, 2023, and who have not paid tax debts of 5 million lira or more as of September 30, 2024, as well as taxpayers for whom tax audits or assessment commission decisions have resulted in tax and penalty calculations, will have their tax assessments finalized between June 1, 2023, and May 31, 2024, announced. The relevant list will be available in all tax offices between October 15-31. The list will be published on the Revenue Administration's website between November 1-15.
SOME COMPANIES EXEMPTED
Companies whose capital is more than half owned by municipalities and those whose applications for offsetting and compensation under the Municipal Law have been accepted, as well as those undergoing restructuring, will not be included in the announcement. Taxpayers who have a tax liability as of the date of the February 6 earthquakes centered in Kahramanmaraş in Adana, Adıyaman, Diyarbakır, Elazığ, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye, Şanlıurfa, and the Gürün district of Sivas, and who are within the declared force majeure scope, will not have their finalized tax and penalty debts announced for either these locations or other tax offices across the country.
TO BE ANNOUNCED WITH TWO SEPARATE LISTS
On the other hand, there will be two separate lists containing the information of taxpayers with tax debts of 5 million lira or more. The first list will include taxes and penalties that have become due as of December 31, 2023, but have not been paid as of September 30, 2024. The second list will include taxpayers for whom tax audits or assessment commission decisions have resulted in tax and penalty calculations, regardless of whether they are in debt. These will consist of individuals whose tax audits or penalties have been finalized between June 1, 2023, and May 31, 2024.
INITIAL AUDITS IN 5 MAJOR CITIES
Minister of Treasury and Finance Mehmet Şimşek stated that the audits of the Tax Audit Board will initially focus on 31 provinces, primarily Istanbul, Ankara, Izmir, Adana, Bursa, and Konya, with the participation of approximately 500 tax inspectors. Later, additional cities will be added to the audited locations, and the application will spread throughout Turkey. In the Ministry's audit mobilization targeting large companies, the first stop will be 3,400 large companies classified as high-risk. Company officials found to have committed irregularities will be called for explanations one by one.
IBAN ACCOUNTS AND SOCIAL MEDIA INCOMES UNDER SCRUTINY
Minister of Treasury and Finance Mehmet Şimşek, in a statement regarding the issue, said, "In line with our principle of fairness and efficiency in taxation, we continue our efforts targeting large companies uninterruptedly. While we always stand by the honest taxpayer, we do not neglect to monitor those who earn a lot but pay little tax." Şimşek added, "3,400 large companies deemed risky will be invited to explain. Among the issues that taxpayers will be invited to explain are the application of inflation adjustment provisions in a manner that undermines the tax base contrary to the legislation. Earning unrecorded revenue and collecting payments through third-party IBAN accounts instead of the business's bank account numbers will also be among the issues questioned. There are nearly 30 different matters among the topics for explanation, including the failure to withhold tax on profit share payments and the incorrect application of exemptions and discounts. In this context, the non-declaration of social media revenues will also be questioned. According to initial calculations, it has been determined that the large companies to be invited for explanation have underreported a tax base difference of 23 billion lira for the relevant periods," he stated.
TAX AUDIT FOR THOSE WHO DO NOT EXPLAIN
Minister Şimşek pointed out that those who do not provide explanations and those whose explanations are deemed insufficient will be referred for tax audits, stating, "In line with our principle of fairness and efficiency in taxation, we continue our efforts targeting large companies uninterruptedly. While we always stand by the honest taxpayer, we do not neglect to monitor those who earn a lot but pay little tax. Our audits will continue to increase across all sectors to prevent unrecorded income and ensure fairness in taxation. While ensuring fairness in taxation by preventing unrecorded income, we also protect the honest and tax-compliant taxpayer against competitive inequality."
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