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Inspection period Receiving the books
Inspection period changes depending on the type of the Taxpayers’ books and documents are demanded with
inspection. In the circumstance that a full inspection is a written notification and they are received through a
handled the period is maximum 1 year as of the initiation of proceeding. That notification contains information on books
the inspection while it stays at maximum 6 months for the and documents to be presented, a deadline of not less than
limited inspections. Inspections should be finalized within the 15 days for presenting them and place and sanctions to be
aforementioned periods. applied in case they are not presented.
Inspection officials are able to demand for additional period Inspection proceedings
through a reasoned request from the relevant unit if they
recognize that the inspection could not be finalized within The officials authorized for handling a tax inspection
that period. Application for that should be made ten days draft a proceeding (inspection proceeding) containing the
before the end of the inspection period. An additional period developments and findings during the inspection. Pertaining
of not more than 6 months may be assigned following the to the new legislation, if the taxpayer demands, the draft
relevant unit’s consideration on the demand. form of the proceeding will be delivered to him two days
before. Through this arrangement, the taxpayers’ being
Assignment able to express his opinions and objections concerning the
matters in the proceeding easily is aimed.
The tax inspector for handling the investigation is assigned
by a formal letter for the inspection. That document contains Besides, if the taxpayer submits a ruling on the matters to be
information on the subject of the inspection (as transfer entreated as a subject of criticism during the inspection to
pricing, disguised capital) and the period of it together with the inspection official, that ruling should also be included in
the information on taxpayer and inspection type. As per the inspection proceeding.
the previous implementation, in case the inspection official
detects something related to a matter or period other than Notification should be ensured
the subject or period of inspection, he could be able to
expand the scope of the inspection by demanding a new Notifying the taxpayer of information on the possible
assignment. transactions according to the proceeding is mandatory. The
proceeding should also contain information whether that
It’s seen that this implementation is limited pertaining to notification is made or not.
the new legislation. According to this, tax inspections could
only be handled regarding the subject and period identified Also, as per the new legislation, the proceeding should also
on the formal letter of assignment. In other words, tax contain wording on whether the taxpayer demands being
inspectors would not be able to demand any information or listened by the Commission for Report Evaluation.
documents from the taxpayer irrelevant of the inspection
subject and period. That is seen as a significant step in After all, the final state of the proceeding is being signed
terms of preventing the inspection officials’ expanding the mutually. The parties putting signature on that should be
investigation to contain different subjects and periods by receiving one copy of that.
their own will.
If not signed
Therefore, in the circumstance that a situation is detected
requiring criticism on a different subject or period, officials In case the taxpayer does not sign the proceeding, the
dealing with that assignment should be notified of that. inspector is not authorized to enforce the taxpayer for
signing. However, the books and documents concerning
However, if the findings within the scope of inspection the findings within the proceeding will be seized. Until the
subject stated in the letter of assignment requires reporting taxes levied and fines applied as a result of the inspection
on different tax types that are not focused in the letter, a are specified, those books and documents would not be
new assignment will not be necessary. handed back to the taxpayer. The related people may be
able to receive the books and documents back after signing
Proceedings for initiation the proceedings at a certain time. However, the books
and documents standing as a criminal evidence will not be
A tax inspection starts with a “Proceeding for Initiation handed back in any circumstance.
of the Inspection”. The date which the taxpayer’s signing
the proceeding is being confirmed as the initiation date. Inspection report
Especially after the limitations on periods of inspections
provided above, the importance of these proceedings At the final stage of tax inspection, “a tax inspection
increased significantly. A copy of the signed proceeding, report” is drafted on the matters detected through the
books and documents are delivered to the inspected proceedings by the inspection officials. The report should
taxpayer. not be contradicting the legislative decrees, regulations,
legislations, the general communiques and circulars
regarding the tax laws.
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