Ministry identifies 700,000 tax evaders in rental income sweep

ANKARA

In a sweeping effort to combat tax evasion, Türkiye’s Treasury and Finance Ministry has identified approximately 700,000 taxpayers who failed to declare their rental income, despite being reminded to do so.

The crackdown comes as a part of a broader initiative to reduce informality in the economy and ensure tax compliance across the country.

Speaking on the matter, Treasury and Finance Minister Mehmet Şimşek revealed that after the income declaration period, more than 95,000 taxpayers came forward to declare 18.3 billion Turkish Liras (around $529,000,000) in tax base, resulting in 1.2 billion liras in tax revenue. However, the ministry has now turned its attention to those who have not yet complied.

“This time, the Revenue Administration (RA) has identified approximately 700,000 taxpayers who, despite receiving reminders, have not submitted their declarations. These cases will be forwarded to the relevant tax offices for punitive action,” Şimşek stated.

However, he also noted that they could still submit their declarations under the regret provisions of the Tax Procedure Law to avoid penalties.

The crackdown on undeclared rental and income follows a comprehensive series of audits by the RA, which began earlier this year. The audits targeted 1.5 million residential and commercial rental properties, with a focus on high-value rentals, short-term leases and properties that are required to process rent payments through bank accounts.

To facilitate the reporting process, the RA introduced a “Rental Notification Form” in its Digital Tax Office apps.

The RA’s efforts also included on-site inspections at over 400,000 properties, leading to a discovery of 153.4 million liras in unpaid taxes and penalties.

Şimşek emphasized that these audits are crucial for ensuring tax justice and reducing the budget deficit.