Turkey is currently building an infrastructure that will allow it to move all tax audit processes to a fully electronic platform. A senior official says the system will help the government intensify its fight against the informal economy.
The new system will enable tax inspectors and taxpayers to meet electronically, with discussions and documentation being handled entirely in the digital space, said Finance Minister Mehmet Şimşek.
Şimşek stressed that the switch to digital platforms is a strategic step to strengthen the fight against the informal economy.
“With this new system, tax auditors and taxpayers will be able to meet electronically, conduct interviews online and record all minutes electronically,” Şimşek said. He added that the system will include technologies such as electronic minutes, teleconferencing applications and machine learning, with significant progress expected within a year.
Şimşek also stressed that all technologies used in the new system would be domestic, thus avoiding dependence on foreign cloud services or foreign teleconferencing platforms that could pose a risk to confidentiality.
“By using domestic software and storing all data on ministry servers, we avoid problems related to tax data protection that could arise from using foreign cloud services,” Şimşek told Anadolu Agency (AA).
It is currently possible to submit documents to auditors electronically, but in many cases face-to-face meetings between auditors and taxpayers are still required.
The new system will convert all documents traditionally processed on paper, including tax audit reports, into an electronic format, replacing handwritten signatures with electronic signatures. This will create a fully digital audit unit that will minimize paper, toner and printer costs.
No more travel for tax audits
The Turkish Tax Audit Board (VDK) has offices in nine major cities, where most audits are conducted.
Thanks to video conferences and electronic meetings, the new system eliminates the need for taxpayers to appear in person at the inspection offices.
“Taxpayers no longer have to travel to audit offices. This means that taxpayers living abroad no longer have to return to Turkey solely for audit purposes. This reduces both the time and transaction costs for compliance,” said Şimşek.
The system also allows tax inspectors to audit taxpayers across the country without having to travel and to focus their efforts on specific regions when necessary.
This will reduce travel and accommodation costs while ensuring uninterrupted public services even under exceptional circumstances. Meetings, training courses and conferences will also be held entirely online, which will reduce the organizational effort.
By allowing tax inspectors and taxpayers from different cities to meet electronically, the new system will reduce the risks associated with local audits.
The system will also facilitate electronic processing so that accounts can be processed electronically and electronic declarations so that taxpayers can also submit declarations remotely in the context of legal investigations, Şimşek noted.
He also said that the ministry is also committed to improving tax compliance and tax awareness through electronic and distance learning programs, especially for some industries, and ultimately promoting voluntary compliance with tax laws.
