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Finance Minister Furious: No Tax Declaration for Owner of 32 Apartments, Lawyers Declare 16 Thousand Liras

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During tax audits, the Treasury reached striking figures. It was found that, during tax audits, there were individuals owning 32 apartments who did not declare their taxes. Reacting to this situation, Treasury and Finance Minister Şimşek expressed his discontent: “An individual with 32 apartments has no tax record. A person who buys a luxury car for 65 million liras cannot explain their income. Jewelers and lawyers declare an average monthly income of 16 thousand, while doctors declare 28 thousand liras monthly.” According to the information provided by Şimşek, the sectors that evade the most taxes are bakers. Treasury and Finance Minister Mehmet Şimşek made statements on the economic agenda during a consultation meeting with AK Party parliament members and members of the Central Decision and Administration Board (MKYK). Şimşek’s remarks on taxes, in particular, drew attention. Şimşek revealed the sector that evades the most taxes and the story of a barber who shaves his wallet became the highlight of the meeting. The Minister noted that jewelers declare an income lower than the minimum wage. According to a report in Sabah Newspaper, Şimşek explained the need for tax reform with examples. “32 APARTMENTS, NO TAX RECORD” Minister Şimşek stated that a citizen had bought 32 apartments in a metropolitan area, but didn’t even have a tax record. He mentioned that this person had never filed a tax return in their life. EXPLANATION FOR THE 65 MILLION LIRA CAR Şimşek mentioned that there are individuals who buy luxury cars worth 65 million liras throughout the year. “We call them, say ‘explain’, but they have no explanations. We tell them ‘prove that you earned this money’, but they cannot prove it. Unless we conduct cross-checks, we cannot implement the model we want.” he said. THE SECTOR THAT EVADES THE MOST TAXES Şimşek emphasized that bakers are the sector that evades the most taxes. “Bakers are among the sectors where most tax evasion occurs. They do not issue receipts at the beginning, middle, or end of the day. They sell bread from morning till night but do not pay taxes.” he stated. Şimşek mentioned that they will shift the burden of proof from the government to the citizens. JEWELERS EARNED LESS THAN MINIMUM WAGE Şimşek stated that last year, doctors had an average gross monthly income of 28 thousand, while lawyers and jewelers declared 16 thousand. THE BARBER WHO SHAVED HIS WALLET At the meeting, Minister Şimşek recounted a story about a bank’s general manager getting a shave. Şimşek shared that the bank manager went to a luxury neighborhood’s barber, was charged 2,500 liras, and wanted to pay by credit card, only for the barber to demand cash. “My friend goes to a barber in Istanbul in a luxury neighborhood, and the price comes out to 2,500 liras. They do not accept payment with a card. He says ‘I don’t have cash’, then the merchant says ‘ATM is nearby’. The friend says he might not know the owner of the IBAN. They pull the amount from the POS by adding a 500 lira commission. We went to that store for an audit. No one came for a week. Because the customers were told not to come. This is a matter of mentality. They all either work with cash or ask for a 20-25% commission. I have 5,500 audit staff in the Treasury. How many doctors, dentists, barbers, lawyers are there in the country?” he said.

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