ANKARA

As part of a comprehensive operation to combat tax evasion, the Turkish Ministry of Treasury and Finance has identified around 700,000 taxpayers who have failed to declare their rental income despite being asked to do so.

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The rigorous approach is part of a broader initiative to reduce informality in the economy and ensure tax compliance across the country.

Finance Minister Mehmet Şimşek stated in his speech on the issue that after the income declaration deadline, more than 95,000 taxpayers declared 18.3 billion Turkish Liras (approximately 529,000,000 USD) as their tax base, resulting in tax revenues of 1.2 billion Liras. However, the ministry has now turned its attention to those who have not yet fulfilled their obligation.

“This time, the Tax Administration (RA) has identified about 700,000 taxpayers who have not submitted their returns despite reminders. These cases will be forwarded to the relevant tax offices for punishment,” explained Şimşek.

However, he also pointed out that they could continue to file their returns under the repentance provisions of the Tax Procedure Act to avoid penalties.

The crackdown on undeclared rental income and earnings follows a comprehensive series of audits by the RA that began earlier this year. The audits targeted 1.5 million residential and commercial rental properties, with a focus on high-priced rental properties, short-term leases and properties where rental payments must be processed through bank accounts.

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To simplify the reporting process, the RA has introduced a “Rental Notification Form” in its Digital Tax Office apps.

The RA’s efforts also included on-site inspections of over 400,000 properties, which uncovered 153.4 million lira in unpaid taxes and penalties.

Şimşek stressed that these audits are crucial to ensure tax fairness and reduce the budget deficit.