Page 10 - VEGUKasim_2016

Vergide Gündem

English Translation

Limits in tax inspection and taxpayer rights

Tax inspection is defined as the activities handled to search, detect and ensure
the accuracy of the taxes to be paid. In principle, tax inspections should be carried
out within the 5 year time-out period. Provided to be remaining within that period,
taxpayers’ books and documents including the current year may be subject to tax
inspection.

In our article, we’ll be dealing with the procedure and principles to be considered
during the stages from the start of inspection till reporting by taking into account
the amendments made (25 October) on the legislation for tax inspection that are
crucial for taxpayers.

Inspection ratio

Inspection ratio is quite low in our country as it was before. Number of inspected
taxpayers and inspection ratios per years are provided as follows within the
Presidency of Tax Inspection Board’s activity report for 2015:

Years Active number of tax- Number of inspect- Inspection ratio
payers for IT ad CT ed taxpayers
2013 2.90%
2014 2,460,281 71,352 2.24%
2015 2.32%
2,472,658 55,284

2,527,084 58,676

Activity report also contains information on taxes levied and fines applied resulting
from the tax inspections. Pertaining to that, tax amount levied following inspections
in 2015 is almost 9.8 billion liras while the fines proposed to be applied has been
18.8 billion liras.

Authorization for inspection

Tax inspections may be handled by tax inspectors, deputy tax inspectors and the
highest fiscal director of the district. At the same time, managers at tax offices and
Revenue Administration’s central and provincial organizations are also authorized
for tax inspections.

Inspection types

Tax inspections may be carried out through two different ways. Full inspection and
limited inspection. Full inspection is defined as investigating a taxpayer’s all types
of business and operations to contain all elements of assessment. It may comprise a
single or more type of tax or a single or more taxation period. Limited inspection is
defined as tax inspections excluding the full inspections.

Numbers for full and limited inspections per years are provided as follows within the
Presidency of Tax Inspection Board’s activity report for 2015:

Years Number of limited Number of full Total
inspections inspections
2013 163,367
2014 130,546 32,821 149,047
2015 159,500
111,692 37,355

129,209 30,291

10 Kasım 2016