Tax audit is an audit method that involves investigating and confirming the accuracy of taxes to be paid by comparing the information contained in taxpayers’ declarations with the actual situation. These inspections are carried out by tax inspectors or tax auditors authorized by the Tax Administration (GİB).
Purposes of Conducting Tax Audit:
Checking the compliance of the information contained in taxpayers’ declarations with tax legislation
Accurate determination of the actual tax base and the taxes to be paid accordingly
Preventing tax evasion and fraud
Ensuring that the tax system operates in a fair and equitable manner
When is Tax Inspection Done?
Tax audit is carried out within the framework of a predetermined plan on taxpayers determined by the Revenue Administration based on risk analysis. In this planning, factors such as the taxpayer’s sector, size, past examination results and risk-bearing status are taken into consideration.
However, GIB also has the authority to initiate an investigation in the following cases:
Detecting inconsistencies or deficiencies in the taxpayer’s returns
Receiving notice or information that the taxpayer is evading taxes
Complaints to tax audit institutions about the taxpayer’s activities
How to Perform a Tax Audit?
The tax audit is carried out at the taxpayer’s workplace or at a location within the Revenue Administration that is suitable for examining books and documents. During the examination, the following actions are carried out by tax inspectors or tax auditors:
Taxpayer’s books, records and documents are examined
Taxpayer’s bank accounts and other financial records are checked
Information and documents are obtained from third parties connected to the taxpayer’s business.
Declarations are taken from taxpayers and employees when necessary.
