Turkey's Treasury and Finance Ministry plans to leverage AI technology to combat tax evasion, enhance audit efficiency, and detect fraud, particularly in high-risk sectors like construction. By employing predictive and advanced analytics and tools for tax and customs analysis, Turkey aims to improve its tax collection rates and close the compliance gap with other OECD countries. AI will automate and streamline data analysis, helping authorities identify suspicious patterns and discrepancies more effectively than traditional methods
Turkey Embraces AI and Machine Learning to Tackle VAT and Tax Fraud
Public
Turkey
Author: Stefan Ditrih
Category:
Fiscal subject related
General information
Views:
225
Content accuracy validation date:
18.10.2024
Content accuracy validation time:
09:02h
Turkey is gearing up to harness the power of artificial intelligence (AI) in its battle against tax evasion, following in the footsteps of other countries such as Austria. The Turkish Treasury and Finance Ministry recently announced this strategic initiative, aiming to employ AI technologies to audit businesses more efficiently and detect tax avoidance and fraud. This move is part of a broader effort to enhance the country's tax collection capabilities, which currently lag behind other OECD nations.
A significant number of Turkish businesses report little to no profits, with more than half declaring either losses or minimal gains. This trend raises concerns within the Ministry, particularly in sectors like construction that are prone to large-scale tax fraud schemes. To address these issues, AI will be deployed in various capacities, including:
- Predictive Analytics: AI models will be used for data pre-processing, enabling authorities to anticipate patterns of fraud or tax evasion.
- Advanced Analytics: Enhanced analytical tools will assist in interpreting more complex tax reporting data.
- Tax Analytics: These tools will consolidate a wider range of tax data, such as salary reports, for more comprehensive reviews.
- Customs Analytics: AI will aid in risk profiling, support customs-related tasks, and help track down international fraud cases.
Other countries have successfully implemented AI-powered measures to combat VAT fraud, and Turkey hopes to achieve similar results. The Ministry has highlighted that advanced technology can significantly boost compliance and detection rates, allowing auditors to uncover wrongdoing more effectively than traditional methods.
AI offers a revolutionary solution to this problem. By analyzing vast quantities of data from tax filings, financial records, and even online activity, AI algorithms can identify suspicious patterns that would be nearly impossible to detect manually. For example, AI systems could flag discrepancies between a company’s declared earnings and its market presence or highlight unusually high expenses relative to industry benchmarks. Automating these processes enables tax authorities to conduct more thorough and accurate audits, minimizing opportunities for tax evasion.
Other news from Turkey
Turkey Implements 1% Withholding Tax for Electronic Commerce Payments
Turkey
Author: Ivana Picajkić
Turkey's Presidential Decree No. 9284 introduces a 1% withholding tax on payments made through electronic commerce platforms, effective January 1, 2025. In the following, you will find out who is affected. Read more
Reminder: Transition to New Central Application for e-Invoice and e-Waybill in Turkey
Public
Turkey
Author: Ivana Picajkić
Turkey
Author: Ivana Picajkić
The Turkish Revenue Administration (GİB) has announced a transition to a new central application for e-invoices (e-fatura) and e-waybills (e-İrsaliye), effective December 14, 2024, at 00:01 (GMT+3). This new system will enhance communication between the "Sender Unit" and the "Mail Box" used for e-invoice and e-waybill documentation. During this transition period, access to the e-Invoice an... Read more
Turkey Invites Public Feedback on Draft Guides for e-Invoice and e-Archive Cancellation Procedures
Turkey
Author: Ivana Picajkić
Turkey has released draft guides to update cancellation and objection procedures for e-Invoice and e-Archive applications, aiming to streamline accounting processes and improve compliance. Stakeholders are invited to submit feedback by December 13, 2024, via efatura@gelirler.gov.tr, ensuring the regulations meet practical needs. Read more
Turkey announced the transition to the New Central Application for e-Invoice and e-Delivery Note.
Turkey
Author: Ivana Picajkić
Turkey has announced the transition to a New Central Application for e-Invoice and e-Delivery Notes, effective December 14, 2024, to modernize and enhance electronic invoicing efficiency. The system requires stakeholders to upgrade to SOAP version 1.2, conduct necessary tests, and complete configurations before the transition date. Read more
Turkey Implements New VAT Rates for Medical Products and Special Consumption Goods
Public
Turkey
Author: Ivana Picajkić
Turkey
Author: Ivana Picajkić
Turkey has amended VAT rates with Decision Number 9126, effective mid-November 2024, aligning with VAT Law No. 3065. A 10% VAT rate now applies to licensed medical foods, human medicinal products, and related active ingredients, while a 20% VAT rate covers goods under special consumption tax and specific items in the Customs Tariff Schedule. These changes aim to support public health initiatives a... Read more
New document was uploaded: Recorded webinar: E-invoicing for Global Retailers
Public
All countries
Author: Kristina Dosen
If you are struggling with complex e-invoicing implementations across multiple countries, and if you are concerned about mounting costs, potential delays, or compliance risks, our webinar will help you to learn how global retailers can streamline e-invoicing efficiently! With countries worldwide mandating e-invoicing, international retailers face unique challenges adapting to new regulations acros... Read more
Fuel Pumps in Turkey: Yn Pump will be regulated from Ökcs Record and Report Formats Technical Guide (Version 4.0) in Turkey.
Turkey
Author: Ivana Picajkić
Turkey has introduced updates for New Generation Fuel Pumps (YN Fuel Pump ÖKCs), outlined in the "ÖKCs Record and Report Formats Technical Guide (Version 4.0)." This guide specifies receipt and report formats, including detailed requirements for cash, card, partial payments, and sales tied to vehicle identification systems, ensuring compliance with Turkish tax regulations. Read more