Company Allegations of Tax Evasion Prompt Investigation by Revenue Administration
Recently, the Turkish Revenue Administration (GİB) released a statement addressing the misleading news and shares circulating in some media outlets and on social media regarding tax postponements by certain companies.
In response to claims that some of Turkey’s largest companies had postponed taxes amounting to 18 billion pounds, and that a total of 62 billion pounds in taxes were postponed by the top 100 listed companies on the stock exchange, the GİB clarified that these statements were completely misleading and intentional. It was emphasized that the perception that the Ministry of Treasury and Finance protects taxpayers by allowing tax debt postponements is inaccurate.
The GİB explained that corporate taxpayers in Turkey are required to keep proper books and prepare financial statements in accordance with the Tax Procedure Law (VUK). Companies subject to independent audits must adhere to both international public supervision standards and Turkish Accounting Standards.
Furthermore, the GİB highlighted that in financial statements, the term “postponed tax debts/postponed tax asset” refers to two specific accounts. These accounts are used to record tax liabilities that are carried forward to future periods, as well as rights to account for future tax benefits. It was noted that without proper accounting information, it is not sufficient to only focus on the account balance of tax debts without considering the context of the financial statements.
Overall, the GİB’s statement aimed to clarify the misconceptions surrounding tax postponements and to provide a better understanding of the accounting practices employed by companies in Turkey.
