Turkish tax authority fine tobacco firm $181 mln
ANKARA
The Turkish tax inspection authority has imposed a record fine of 6 billion Turkish Liras ($181.2 million) on a tobacco manufacturer over unreported revenue as part of a major audit into large taxpayers by the Treasury and Finance Ministry.
In line with Minister Mehmet Şimşek's principle of "taxing the affluent more," inspectors from the Tax Audit Board have continued their audits for a while. They commenced intensive tax inspections utilizing the "yield analysis" method to ascertain the actual production output of businesses. This method entails analyzing the materials used in manufacturing, as well as other production inputs, alongside the finished goods and outputs that should have been produced.
Consequently, a yield analysis and inventory audit were conducted for a company engaged in tobacco production.
The calculations considered the capacity and operational hours of the cigarette production lines, as well as the company's consumption data for natural gas, tobacco, and cigarette filters.
The results of the audit revealed that the company had generated unreported revenue.
Certain documents within the company were not included in the legal ledger records and declarations. Furthermore, the authorities determined that excise and value-added taxes on the cigarettes, despite being invoiced, were not reflected in the declarations.
As a result of the audit, the company was fined approximately 6 billion liras, with the amount expected to increase due to late payment interest.
The minister stated that tax inspectors have initiated simultaneous inspections of 707 jewelers in nine metropolises.
"We will continue to employ these audit methods in the forthcoming period. New sectors and firms are lined up for yield analysis and physical and inventory audits. Our efforts in this regard will persist," he asserted.
"In this context, we are closely monitoring our large taxpayers. Our audits will expand to encompass all sectors. We are resolute in our commitment to curbing the shadow economy and enhancing tax equity. The improvements in tax revenues will be channeled into productive areas for the welfare of our citizens and the stability of our country,” Şimşek noted.
