Example Application
Based on a verification conducted by the Başkent Tax Office Directorate on 17/2/2025, retroactive tax liability was established for Mr. (E) effective from 1/11/2024, due to his unregistered business activities. The taxpayer subsequently submitted VAT returns for the 2024/11-12 and 2025/1-2 periods past the legal deadline.
Accordingly, for the 2024/11-12 and 2025/1 periods in which the taxpayer operated without registration, a tax loss penalty of 50% will be assessed on the accrued tax due from the VAT returns submitted before the commencement of a tax inspection or referral to the assessment commission. This penalty will be increased by 50%, resulting in a 75% penalty imposed on the taxpayer.
On the other hand, since the 50% increased tax loss penalty should only apply up until the period when the determination is made, the VAT return submitted for the 2025/2 period after the legal deadline will not incur an increased tax loss penalty of 50%.
1) Article 11 of Law No. 7524 amended Article 353 of Law No. 213, which regulates special irregularity penalties, to add Table (2) below. This amendment stipulates that special irregularity penalties will be applied in increasing amounts for each determination.
Table
| Determination Number | Penalty Amount for Clause (1) of the First Paragraph of Article 353 (Minimum-TL) | Penalty Amount for Clause (2) of the First Paragraph of Article 353 (TL) |
|---|---|---|
| 2nd Determination | 20,000 | 20,000 |
| 3rd Determination | 30,000 | 30,000 |
| 4th Determination | 40,000 | 40,000 |
| 5th Determination | 50,000 | 50,000 |
| 6th and Subsequent Determinations | 100,000 | 100,000 |
Source: Revenue Administration ttps://www.gib.gov.tr/node/178463
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