Do you know what happens when you does not pay your tax?
There are 4 types of penalties envisaged by the TP Law:
Tax loss fine equal to the amount of the tax lost is charged to the taxpayer or the responsible person. In case the tax loss is caused by the acts mentioned in Article 359 (such as altering or concealing the books, records, making calculation and accounting frauds in the books and records, etc.) this penalty is applied three fold and one fold to
the participants of such acts.
Irregularity is an infraction of the provisions of tax laws concerning the form and the procedure. Irregularities are categorized as the first and second degree irregularities according to the level of seriousness of the action and are penalized in accordance with the relevant degrees.
Special irregularity penalties are imposed when documents (invoice, note of expenses etc.) have not been issued, used, kept and those who are obliged to give information, to submit books have not fulfilled these obligations, and in case of failing to comply with the requirements which are made compulsory by the Ministry of Finance based upon the authorizing provisions of the Law.
Imprisonment is another penalty imposed to those who commit acts mentioned in Article 359. According to the type of these illicit acts (such as accounting frauds in books and records, opening accounts in the name of unreal persons, altering or concealing the books, etc.) the imprisonment periods may vary from 18 months to 3 years, 2 to 5 years or 3 to 5 years.
Tax penalties are paid; If a suit is not brought against the fine at the tax courts on the date of expiry, the time to
institute a suit,
If a suit is instituted against the fine, on the date of the notice to be arranged by the tax office based on the decision of the tax court,
within one month following the said dates.
In case taxpayers who commit acts that entail a tax loss penalty in declared taxes and others who participate in committing these acts notify on their own accord with a petition the concerned authorities of their unlawful acts, they will not be imposed a tax loss penalty
providing that conditions specified by Article 371 are satisfied.
Conciliation is a process based on agreement between tax administration and taxpayer on the tax amount to be assessed and the fine to accrue. If conciliation is requested before the
assessment done by the tax administration, in other words at the stage of the preparation of tax audit report, it is called “conciliation before assessment”, if the request is made after.
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes. assessment, it is called “conciliation after assessment”. However taxpayers can benefit only
from one of these options. In case conciliation is reached, the Minutes of conciliation drawn up by commission will be decisive definitive and hence tax administration does what is
necessary immediately. Taxpayer may not sue or make complain to any authority about the cases on which conciliation has reached and the report has drawn up.
4.Tax Cases (Articles 377-417)
This section comprises provisions about cases which will be brought by taxpayers and those who are punished with tax penalty.
