Imposed Penalties for Not Submitting E-Declaration and Notification of Retrospective Tax Obligations

According to the Communique of Tax Procedure Law No. 449 published in the Official Gazette dated 10.04.2015, irregularity fines for not submitting e-declaration and notification of retrospective tax obligations shall not be imposed anymore.

Due to tax evaluation reports, the application of the liable, or tax office identification, it is possible to open a liability retrospectively. However, for declarations and notifications not submitted online and in time, there is a special irregularity fine. In cases opened against such fines, judicial authorities decided these fines shall not be imposed, which became a permanent decision. In order to solve the problems arising for such cases, the “Financial Administration” made a regulation and stated in communique that there will be no longer irregularity fines imposed.

On the other hand, because there was no declaration made for the liable persons in question, retrospective tax will continue to be levied, tax loss fine will continue to be imposed for taxes not paid in time, and irregularity fines will continue to be imposed for not declaring start of the employment in time by Law No. 325/I-/.

The Content of the Warning to be Made to the Liable Persons Regarding the Declaration and Notification

Those liable persons who must submit their declarations along with Form Ba and Form Bs notifications are notified by the tax office regarding there is a liability opened for them (also stating the tax types) and they have 15 days to submit their declarations and notifications online within the scope of General Communique of Tax Procedure Law Serial No. 340 and The Circular of Tax Procedure Law Serial No. 15.

In this notification the following is included:

• The declarations and notifications whose submission deadlines correspond to the days within 15 days from the date of notification of this letter should be submitted in time and by hand, by mail or electronically
• The declarations and notifications whose submission deadlines correspond to the days after 15 days from the date of notification of this letter should be submitted only electronically
• In case of failure to fulfill these obligations, the penal provisions of the Tax Procedure Law No. 213 will be applied

Penalties to be imposed when this 15-day period corresponds to the last of the declaration and notification submission and when there is no declaration and notification made

• If the declaration and notifications are not submitted by hand, by mail or electronically in time, the tax office will impose a penalty for irregularity in accordance with Article 352 of the Law.
• In addition, in cases requiring a tax loss penalty due to the failure to submit the return in due time, the tax loss penalty will be compared to the irregularity penalty according to Article 336 of the Law and the heavier penalty will be applied.

Penalties to be imposed when this 15-day period corresponds to a day after the due day and when there is no declaration or notification made

In cases when the declarations and notifications are not submitted electronically in time, the tax office will impose a special irregularity fine in accordance with the repeated Article 355 of the Law.

You can read the communique published in the Official Gazette here. (This link is in Turkish)