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February 12, 2012
 
 
 
 
 
 

Government to clamp down on tax evasion

8 February 2010 / TODAY’S ZAMAN, İSTANBUL
The Finance Ministry is about to implement a “compulsory collection” system to minimize its losses incurred through tax evasion.

At least 90 percent of taxpayers who have been served with a notice to seize their assets for nonpayment of tax debts or who have failed to declare their taxes will see their bank accounts reduced by the amount of tax indebtedness to the state.

The Anatolia news agency reported yesterday that according to the Revenues Administration’s (GİB) 2010 Performance Program, a new system called the Debt Follow-up and Assessment System will soon come into effect to increase the efficiency of tax collection operations. In addition to compulsory collection, the system also places special emphasis on raising taxpayer awareness regarding paying their taxes on time.

The system aims to collect 5 percent of total outstanding taxes through banks. Additionally, the amount of collections received from taxpayers prior to them applying to tax offices to get an official document stating they are clear of any tax debt will constitute 1 percent of total outstanding taxes.

The most challenging part of the system envisages sending electronic orders to the banks for at least 90 percent of the taxpayers about whom GİB has drawn up a notice of levy to recover tax debt. Upon these notifications, the banks will automatically seize the money in the tax defaulters’ bank accounts and transfer it to the Treasury’s coffers.

Other projects in the program include: Taxpayer Current Account project: The secondary regulations and relevant system infrastructure for the creation of “taxpayer current accounts,” which will make it possible to see taxpayers’ tax accrual and collection records together and monitor their up-to-date balance due.

Notice Follow-up Software: Studies to complete a project to create Notice Follow-up Software, which will automatically classify documents of notices for tax debts in default into sectors and will provide risk analysis assessments regarding these documents.

Data Warehouse Management: A new study will soon commence to establish an infrastructure that will process the information obtained from various institutions and establishments of the state to strengthen the inspection and auditing operations of the GİB’s Data Warehouse application.

 
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