New tax package brings 5,000 TL fine for a 10 TL Purchase
The tax package has finally been submitted to the Parliament, ending months of speculation and uncertainty for the financial public and the business world. While the package’s stated aims are the classic goals of combating the informal economy, ensuring tax justice, and increasing tax compliance, the actual content varies.
Key Provisions in the Tax Package:
1. Global Minimum Corporate Tax: This was accepted without objection.
2. Taxation of Tips for Delivery Couriers: Income from tips will be regulated through a simplified taxation system.
3. New Powers for the President: The President is granted the authority to impose withholding taxes on the purchase of goods and services in specific sectors or activities.
4. VAT Adjustment: Allowing carry-forward VAT to be deducted is seen as a violation of property rights.
Special Irregularity Penalties and Tax Amnesties
Special irregularity penalties have become more complex, and the fines have increased disproportionately. Historically, such increases in fines have often been followed by tax amnesties, indicating a potential future amnesty.
Two Notable New Penalties
1. Penalties for Unregistered Activities: Those operating without registering with the tax office will face a 50% higher penalty.
2. Penalties for End Consumers Not Obtaining Receipts: End consumers who fail to obtain a receipt will face a 5,000 TL fine. However, there is no current regulation that requires end consumers to obtain receipts.
Criticisms and Lack of Transparency
The rapid passage of the tax package has been criticized, with calls for input from organizations such as TOBB, TÜRMOB, TÜSİAD, and MÜSİAD. It is argued that tax laws should not be passed so quickly, as this violates the principle of legality of taxes and taxpayer rights.
The package lacks any urgent provisions and does not include measures to address an immediate need for state revenue. Therefore, it is suggested that the enactment of the package be postponed to the next legislative term.
