IRS launches electronic tax audit system – Breaking News
Treasury and Finance Minister Mehmet Şimşek has provided details about the digital transformation efforts taking place within his Ministry and the Tax Inspection Board (VDK).
It has been highlighted by Şimşek that significant steps have been taken to speed up the digital transformation within the Ministry by implementing new technological systems. The aim is to promote the effective utilization of information technologies, ultimately strengthening the Ministry’s capabilities in combating the informal economy.
In addition, Şimşek mentioned that continuous efforts will be made to establish regulations that promote taxpayers’ voluntary compliance with the tax system. These regulations will be based on principles of justice, effectiveness, and efficiency in taxation.
One of the key initiatives highlighted by Şimşek is the creation of an infrastructure that enables auditing processes to be fully transitioned to an electronic environment. This new system will facilitate electronic interactions between tax inspectors and taxpayers, including virtual meetings and electronic record-keeping. The goal is to achieve a significant digital transformation within a year through the integration of technologies such as electronic minutes, teleconferencing applications, machine learning, and artificial intelligence.
Furthermore, Şimşek emphasized the Ministry’s support for the national economy through the use of domestically supplied systems and in-house software. Measures are being taken to ensure that sensitive tax-related data is stored on the Ministry’s servers, avoiding potential privacy concerns associated with storing data on foreign cloud servers or using teleconferencing applications of foreign origin.
Regarding the audit process, Şimşek announced that reports such as tax audit reports will be transitioned to electronic media using e-signatures. This transition will lead to the creation of a 100% digital audit unit, effectively reducing costs related to paper, toner, and printer usage to zero.
One of the key benefits highlighted by Şimşek is the elimination of the need for taxpayers to physically visit inspection buildings in major provinces. Through the implementation of in-house video conference and electronic meeting applications, taxpayers will have the convenience of fulfilling their legal responsibilities remotely. This will reduce time and transaction costs for taxpayers, especially for those residing abroad.
Overall, Şimşek emphasized that the digital transformation efforts will streamline the audit process, allowing inspectors to conduct inspections nationwide without the need for extensive travel. This will optimize workforce efficiency, reduce costs associated with travel and accommodation, and ensure uninterrupted public service even in extraordinary circumstances.
In conclusion, Şimşek highlighted the benefits of bringing inspectors and taxpayers from different cities together electronically, enabling reconciliations and explanations to be conducted electronically. The use of electronic training programs will also enhance tax awareness and encourage voluntary compliance across various sectors.
