EUR
enTurkey’s cigarette maker has been issued a record fine of 6 billion lire
August 9, 2024
The Turkish tax inspectorate is strengthening its control over large taxpayers. The Ministry of Finance and Treasury, under the leadership of Mehmet Shimshek, continues to actively fight tax evasion by directing its efforts at companies with unaccounted revenues. As part of these measures, a record fine of 6 billion lire (almost $180 million) was imposed on one of the largest cigarette producers.
Intensive vetting and combating informal economy
The ministry has increased its scrutiny of large taxpayers across the country, focusing on companies that hide revenues. This move is part of a campaign to ensure fair taxation, where the burden falls on those who earn more. The verification revealed that a large part of the tobacco producer’s revenue was not declared.
The method of «yield analysis» and new approaches to testing
To identify unreported income, tax inspectors use the "yield analysis" method. It involves a thorough analysis of all production resources, from raw materials to the final product. This approach has already produced tangible results, particularly in the tobacco company audit, which found that part of the proceeds were not accounted for.
Jewelers and other sectors under close supervision
Shymshek also reported the beginning of large-scale inspections in the jewelry industry. At the same time, inspectors began to inspect 707 jewelry companies in nine major cities of Turkey. These measures aim to identify discrepancies between actual and declared stocks, which is part of a broader strategy to combat the informal economy.
Intensive vetting and combating informal economy
The ministry has increased its scrutiny of large taxpayers across the country, focusing on companies that hide revenues. This move is part of a campaign to ensure fair taxation, where the burden falls on those who earn more. The verification revealed that a large part of the tobacco producer’s revenue was not declared.
The method of «yield analysis» and new approaches to testing
To identify unreported income, tax inspectors use the "yield analysis" method. It involves a thorough analysis of all production resources, from raw materials to the final product. This approach has already produced tangible results, particularly in the tobacco company audit, which found that part of the proceeds were not accounted for.
Jewelers and other sectors under close supervision
Shymshek also reported the beginning of large-scale inspections in the jewelry industry. At the same time, inspectors began to inspect 707 jewelry companies in nine major cities of Turkey. These measures aim to identify discrepancies between actual and declared stocks, which is part of a broader strategy to combat the informal economy.
Tax Compliance Policy
The Ministry of Finance and Treasury intends to continue strengthening its control over tax compliance. The increase in tax revenues will be directed to improve the welfare of citizens and maintain stability in the country. Shimshek also noted that the fight against tax evasion and unfair competition remains one of the top priorities of the government.
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