The Ministry of Treasury has launched an inspection campaign targeting large corporations nationwide. As part of this initiative, 3,400 large companies will be called for explanation. It has been determined that these companies have underreported a tax base difference of 23 billion lira. Treasury and Finance Minister Mehmet Şimşek stated that the Tax Audit Board is preparing for an intensive inspection program targeting large corporations nationwide. “Under the principle of justice and efficiency in taxation, we are continuously conducting field operations targeting large corporations. While we are always by the side of honest taxpayers, we do not neglect to monitor taxpayers who earn a lot but pay little tax,” he said. Şimşek commented on the new steps to be taken in the fight against the informal economy. Pointing out that the ministry departments are continuing their efforts in this direction, Şimşek stated, “Within this framework, teams consisting of tax inspectors affiliated with the Tax Audit Board Presidency are preparing for an intensive inspection program targeting large corporations nationwide.” Inspections will initially focus on Istanbul, Ankara, Izmir, Adana, Bursa, and Konya in 31 cities with the participation of approximately 500 tax inspectors. In the following period, inspections will be expanded nationwide. RECKONING OF REVENUES WILL BE SOUGHT Şimşek indicated that risk analysis studies involving hundreds of thousands of taxpayers are being carried out using machine learning analyses. He continued, “3,400 large corporations deemed to be risky will be called for clarification. Among the subjects that taxpayers will be called to clarify are the inappropriate application of inflation adjustment provisions that erode the tax base contrary to the legislation. Among the issues that taxpayers will be questioned about are obtaining undeclared revenue, making collections through third-party IBAN accounts instead of the company’s bank account number. Not deducting withholding taxes from profit distributions and incorrect application of exemptions and deductions are among the approximate 30 different issues to be asked during clarification. Within this scope, failure to declare social media revenues will also be questioned. According to preliminary calculations, large corporations called for clarification have been found to underreport a tax base difference of 23 billion lira for the relevant periods.” “WE PROTECT THE HONEST TAXPAYER” Minister Şimşek stated that as a result of the explanations provided, it is envisaged that billions of liras of tax calculated on the declared tax base will be reclaimed by the public, and those taxpayers found to have sufficient explanations will be relieved of the burden brought by the tax review process. Pointing out that those who do not provide explanations and those whose explanations are deemed insufficient will be referred to tax audits, Şimşek said, “Within the framework of our principle of justice and efficiency in taxation, we are continuously conducting field operations targeting large corporations. While we are always by the side of honest taxpayers, we do not neglect to monitor taxpayers who earn a lot but pay little tax. Our inspections in all sectors to ensure justice in taxation by preventing informality will continue to increase. While preventing informality and ensuring justice in taxation, we also protect the honest and tax-compliant taxpayer against unfair competition.”