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Those Who Are Detected to Be Working Off the Record in the Tax Inspection Will Also Pay Their Past Tax Returns with Penalties in Türkiye!

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Example Application

Based on a verification conducted by the Başkent Tax Office Directorate on 17/2/2025, retroactive tax liability was established for Mr. (E) effective from 1/11/2024, due to his unregistered business activities. The taxpayer subsequently submitted VAT returns for the 2024/11-12 and 2025/1-2 periods past the legal deadline.

Accordingly, for the 2024/11-12 and 2025/1 periods in which the taxpayer operated without registration, a tax loss penalty of 50% will be assessed on the accrued tax due from the VAT returns submitted before the commencement of a tax inspection or referral to the assessment commission. This penalty will be increased by 50%, resulting in a 75% penalty imposed on the taxpayer.

On the other hand, since the 50% increased tax loss penalty should only apply up until the period when the determination is made, the VAT return submitted for the 2025/2 period after the legal deadline will not incur an increased tax loss penalty of 50%.


1) Article 11 of Law No. 7524 amended Article 353 of Law No. 213, which regulates special irregularity penalties, to add Table (2) below. This amendment stipulates that special irregularity penalties will be applied in increasing amounts for each determination.

Table 

Determination Number Penalty Amount for Clause (1) of the First Paragraph of Article 353 (Minimum-TL) Penalty Amount for Clause (2) of the First Paragraph of Article 353 (TL)
2nd Determination 20,000 20,000
3rd Determination 30,000 30,000
4th Determination 40,000 40,000
5th Determination 50,000 50,000
6th and Subsequent Determinations 100,000 100,000

Source: Revenue Administration ttps://www.gib.gov.tr/node/178463
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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