A new tax amnesty is spoken in Ankara backstage due to the recession, due to the decrease in tax collections last year and the budget deficit out of control. If realized, this is Turkey’s 36th, will be the 10th of the ruling AKP, the tax amnesty. Tax expert and Başkent University Lecturer Dr. Ozan Bingöl drew attention to the absence of non-tax revenues such as need funds, amnesty, military service with pay and the decrease in collection rates.
Stating that a total of 35 times tax amnesty has been introduced since 1924, 9 of them have been put into practice in the last 18 years, Bingöl said: “Amnesty laws appear for economic, sometimes financial, sometimes administrative and technical and often political reasons.” Emphasizing that 2019 was closed with record budget deficits and the budget performance was positive in the first month of this year, Bingöl emphasized that the deficit coming from last year will increase the resource requirement of the budget due to the increasing interest burden, geopolitical risks and cross-border operations. There are not many one-time revenues this year, such as zoning forgiveness and military service by pay. With the decrease in the collection rates, the need for liquidation of the increased receivables is also evident ”.
COLLECTION RATE DECREASED
Emphasizing that the collection / accrual rate fell to 76 percent in Corporate Tax last year, Bingöl continued as follows:
“So one out of every four institutions didn’t pay their taxes. The collection / accrual rate in VAT is 40 percent. The collection / accrual rate is 52 percent even in Inheritance and Gift Tax. 69 percent in Motor Vehicle Tax ”.
Which minister said what?
– 26 December 2003 – Minister of Finance Kemal Unakıtan: “There is no tax amnesty after that. This should be understood. ”
– 30 April 2013 – Minister of Finance Mehmet Şimşek: “In no way is the tax amnesty on the agenda.”
– 3 March 2016 – Minister of Finance Naci Ağbal: “Tax amnesty is never in question.”
– 17 July 2018 – Minister of Finance Berat Albayrak: “July 31 is the last opportunity, no other configuration.”