Unpaid taxes hit 16.7 billion in 2007
Posted by meb at January 26th, 2008
According to data recently released by the Finance Ministry, unpaid taxes amounted to YTL 16.7 billion in 2007. It is common in Turkey for small businesses to declare revenues far below their actual figures to pay less tax. But of the total YTL 169.5 billion in taxes due on declared revenue for 2007, a 10th — YTL 16.7 billion — has gone unpaid. The total amount of taxes collected last year was YTL 152.8 billion. Defaults on income tax amounted to YTL 5.4 billion. YTL 2 billion in corporate taxes went unpaid in addition to YTL 102.8 million in inheritance and transfer taxes, YTL 1.7 billion in motor vehicles taxes, and YTL 4.7 billion in value added tax.
Meanwhile, civil fines totaled nearly YTL 13 billion last year. Of the total, YTL 10.6 billion was from tax fines, YTL 1.67 billion from administrative fines (including traffic tickets) and YTL 405 million from legal fines. But only YTL 3.7 billion of these fines were collected in 2007. The collection rate in tax fines was 25.4 percent. For administrative fines the rate was 42.8 percent and for legal fines it was 39.5 percent.
The collection goals for eight out of 13 tax items were met last year, while collection remained below year-end goals last year. The budget goal for income tax was YTL 33.4 billion and the actual collection hit YTL 34.4 billion. The goal for corporate tax was YTL 11.9 billion while collection, was around YTL 13.7 billion. Year-end goals were exceeded by YTL 16.5 million for motor vehicle taxes; by YTL 38.7 million in banking and insurance taxes; YTL 184 million in special communication taxes; YTL 64.7 million in customs taxes; 3.5 million in stamp duty; and by 147.5 million in administrative fees. Collections remained below the government’s targets in value added tax, inheritance and transfer taxes, excise tax and gambling tax.
source: Today’s Zaman
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