Example
Based on an inspection conducted on 13/1/2025, retroactive tax liability was established for Mr. (F) by the İstiklal Tax Office Directorate, effective from 9/12/2024, due to his unregistered business activities. The taxpayer subsequently submitted the VAT return for the 2024/12 period past the legal deadline, with a tax of 500,000 TL accrued. Given that this relates to an unregistered activity period, a tax loss penalty of 75% has been applied, resulting in a penalty of 375,000 TL (500,000 TL x 0.75).
Following a tax inspection conducted on later dates, it was determined that the VAT return for the 2024/12 period submitted by the taxpayer did not reflect the actual situation, and an additional VAT assessment of 250,000 TL was recommended.
Accordingly, a 50% increased tax loss penalty must be applied to the proposed tax assessment. Pursuant to the legal provision, the penalty rate should be applied at 1.5 times, resulting in a tax loss penalty of 375,000 TL (250,000 TL x 1.5) for the taxpayer.
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 https://www.gib.gov.tr/node/178463
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