Big spenders on tax authorities’ radar

ISTANBUL

The Finance Ministry’s Tax Inspection Board is keeping a close eye on those who spend lavishly but pay little or no tax.

Some 800 people, who spend more than 5 million Turkish Liras a month, spend money on luxury items and own luxury cars, have already been put on the board’s radar.

The move came after Finance Minister Mehmet Şimşek said that the government aims to ensure tax equity and tax efficiency.

“We are improving the financing of the budget by fighting against informal economy,” Şimşek said in his earlier remarks.

During their inspections, authorities from the board identified at least 800 individuals whose monthly expenditures exceed 5 million liras but declare no income and pay no taxes.

Authorities will look into their expenditures, find out the source of their wealth and eventually make them pay taxes out their income.

Businesses that do not pay their taxes by conducting transactions via the international bank account number [IBAN] or "mail order" payment are also being investigated, Şimşek wrote on social media platform X on July 13.

“We will continue to keep an eye on those who gain unfair profits by causing tax loss and evasion and those who create unfair competition,” the minister added.

In January-May, tax revenues rose 99 percent from a year ago to 2.73 trillion liras with income tax collection up 126 percent to 481 billion liras. Corporate tax revenues increased 61 percent annually to 452 billion liras, according to the latest data from the Finance Ministry.

The central government budget ran a deficit of 471 billion liras in January-May, down 79 percent from a year ago.