Tax authorities keep close eye on large companies

ANKARA

Tax authorities are keeping a close eye on tax payments of large companies, the Treasury and Finance Ministry has said in a statement.

As a result of the assessments made by the Tax Audit Board through the risk analysis system in order to investigate, determine and ensure the accuracy of taxpayers' declarations, tax audits are currently underway for 27 percent of the 2815 large taxpayers, the ministry said.

More companies will be inspected for tax purposes, the statement added.

Also, among the taxpayers who repeatedly declare losses, tax inspections are carried out on 735 taxpayers, according to the ministry.

A tax package, approved by parliament last week, will strengthen tax efficiency and fairness. Also, with this package, tax penalties will be increased, some exemptions will be abolished, and the informal economy will be fought more vigorously, said the ministry.

According to the new regulations, a minimum of 10 percent corporate tax will be collected from companies that do not have any taxes to pay due to incentives, exemptions and discounts.

“This [tax] law, which aims to increase justice and efficiency in taxation and combat the informal economy, does not impose a burden on our citizens,” Finance Minister Mehmet Şimşek wrote on X after parliament passed the package.

"Our goal is to collect more tax from those who earn more and less than from those who earn less,” the minister said.

Tax revenues increased 100 percent year-on-year to 3.2 trillion Turkish Liras in the first six months of 2024, with corporate tax collection rising 60.2 percent to 466 billion liras, according to the latest budget data from the Finance Ministry.

The central government budget posted a deficit of 747 billion liras in January-June, up 54.6 percent from a year ago.