Initiative from Ministry of Treasury and Finance for debt collection: Seizures begin

The Ministry of Treasury and Finance, inviting indebted taxpayers for negotiations, is requesting half of the debt to be paid upfront and the remaining amount to be paid by the beginning of the new year. It has been claimed that many tax offices have initiated seizure processes for taxpayers in this situation.

Although the budget showed a surplus of 48.6 billion Turkish Liras in July, the cumulative budget deficit for the January-July period reached 434.7 billion Turkish Liras. The risk of the budget deficit increasing even further prompted the Ministry of Treasury and Finance to take action.

MINISTRY OF TREASURY AND FINANCE TAKES STEPS TO COLLECT TAX RECEIVABLES

Despite the fact that the omnibus bill proposal increased the public’s additional borrowing authorization to 2 trillion 181 billion Turkish Liras, the Ministry of Treasury and Finance, which wants to borrow less, has launched a major debt collection initiative through tax inspectors and tax offices. Within this context, it is stated that the ministry’s receivables have reached 1 trillion Turkish Liras. The ministry first calls individual taxpayers with outstanding debts through tax offices, requesting that at least half of the debts be paid upfront and the remaining amount be paid by the beginning of the new year.

SEIZURE PROCESSES START

Allegedly, despite warnings from the ministry, seizures were initiated for taxpayers who did not pay their debts as of last week. In this context, since the easiest form of seizure can be applied to vehicles and immovable properties, seizure notices have been sent to traffic and title deed offices on behalf of taxpayers. It is also noted that seizure processes have started for accounts in banks.

UNABLE TO FIND FINANCING TO PAY OFF DEBTS

After receiving verbal warnings from the ministry, a significant portion of taxpayers who sought to fulfill their financing needs by approaching banks were unable to secure financing. It is stated that the requests for deferral and installment plans of taxpayers who couldn’t obtain credit from banks are sent to the Revenue Administration Presidency because tax offices have limited authority, and this prolongs the process.