Turkish Finance Minister Mehmet Şimşek Announces Extensive Measures Against Non-Compliant Property Owners, Issuing ₺153.4 Million in Tax Penalties.
As Turkiye ramps up its efforts to combat tax evasion, Finance Minister Mehmet Şimşek has announced a major crackdown on landlords who failed to declare rental income. Following the closure of the latest tax return period, the Ministry of Finance identified 700,000 landlords who did not file the necessary declarations, despite being informed by the Revenue Administration (GİB). The Ministry has initiated legal proceedings against these individuals, issuing tax and penalty notices amounting to 153.4 million lira.
Heightened Enforcement and Penalties
Minister Şimşek emphasized that the GİB has been rigorously monitoring rental income through various means, including bank transactions, property records, and tenant declarations. Landlords who collect rent payments through bank transfers but fail to report this income are now under close scrutiny. The Ministry’s efforts included over 400,000 physical inspections, resulting in substantial penalties for non-compliance.
Key Points of the Crackdown:
- Targeted Audits:
Over 1.5 million properties were evaluated for potential rental activity based on records from the Land Registry and Population Directorates. - Physical Inspections:
GİB officers conducted over 400,000 site visits to verify rental income declarations. - Automated Monitoring:
The GİB introduced a ‘Rental Declaration Form’ via the Digital Tax Office and GİB Mobile App, enabling tenants to electronically report rental agreements. - Widespread Communication:
The Ministry sent reminder SMS messages to nearly 1 million taxpayers who had not yet submitted their tax declarations.
Compliance and Consequences
The Ministry’s efforts have already yielded significant results. Following the SMS reminders, 95,989 landlords submitted their tax returns, reporting a total income of 18.3 billion lira and taxes amounting to 1.2 billion lira. Minister Şimşek highlighted that landlords who voluntarily declare their income before legal proceedings commence can benefit from leniency under the Tax Procedure Law’s provisions on voluntary disclosure.
The Importance of Tax Compliance
Minister Şimşek underlined the government’s commitment to fighting the informal economy and ensuring tax justice. The crackdown on undeclared rental income is a critical component of these efforts, aiming to reduce the budget deficit and uphold fairness in the tax system. The Ministry’s actions demonstrate a clear message: those who evade taxes will face strict penalties, while voluntary compliance is encouraged and rewarded.
Moving forward, the Ministry of Finance plans to continue its comprehensive nationwide inspections, focusing on high-risk sectors. The goal is to ensure all income is properly declared and taxed, contributing to a more equitable and transparent economy.
Source: Trthaber / Prepared by Irem Yildiz