Finance Minister Mehmet Şimşek said risky taxpayers and provinces will be exposed through a new program developed by the Tax Inspection Board's (VDK) Risk Analysis Center. From now on, those who declare more than two losses over the past five years and who conduct a large number of commercial transactions with tax havens will be included in the high-risk group, the minister added.
In an attempt to prevent losses, evasions and informalities in tax payments, VDK has taken a major step to draw Turkey's risk map. The new risk assessment software developed by VDK will give risk points for all taxpayers, sectors and provinces, and the board will intensify its audits in line with these risk scores.
Speaking to Anadolu Agency (AA) on the matter, Şimşek said audit processes are electronically conducted in order to increase tax supervision efficiency and fight a shadow economy. The qualified, workable and reliable data that is derived from different sources is analyzed by experts based on objective and scientific criteria. VDK compiles such data and various statistical methods from all kinds of external sources as well as from public and private organizations, including the Revenue Administration, Social Security Institution, General Directorate of Land Registry and Cadastre, customs administrations, banks and financial institutions. The software tests the compiled data against more than 500 risk scenarios that are thought to lead to tax losses and evasions. The high-risk elements include intense economic relations with shareholders, the declaration of more than two losses over the past five years, the declaration of continuously deferred value-added taxes throughout 36 months and making a large number of commercial transactions with tax havens. Such scenarios are practiced separately for each taxpayer, who gets certain risk points for each scenario. Additionally, a general risk score is determined by comparing taxpayer's own data, similar-sized taxpayers' data and sectoral data. VDK first determines the taxpayers that will be supervised by taking their risk scores into consideration. Thereafter, the classification continues on the basis of sectors, taxpayers, taxpayer groups, regions, provinces and tax authorities. As a result of its analyses and comparisons, the board identifies risky sectors, taxpayers and risk areas and degrees in an objective way. Moreover, it determines topics and taxpayers to be examined by taking the active workforce, risk areas and risk degrees into consideration. Thanks to risk status reports of taxpayers and the general risk map of Turkey, the new program is aimed at minimizing the problems that are faced in determining taxpayers who will be given a priority during audits, as well as in planning and practicing supervision studies. Moreover, the risk scores of all provinces are determined as a result of evaluation studies. The riskiest provinces in terms of tax-related matters are Hakkari, Kocaeli, Siirt, Diyarbakır and Istanbul, while the least risky ones are Ardahan, Bayburt, Muğla, Aydın and Edirne.
