The Revenue Administration Has Initiated a Tax Audit!
Severe Blow to the Era of "Under-Declaration" in Title Deeds: Revenue Administration Reviews 5-Year Records!
The Ministry of Treasury and Finance has launched a digital tracking system to prevent tax losses in the real estate sector. The Revenue Administration (GİB) has begun scrutinizing thousands of buyers and sellers who declared sale prices below market value to pay lower title deed fees. Here are the details of the audit affecting millions of homeowners and investors:
AI and Cross-Checking in Action
GİB is not just looking at declarations; it is scanning all title deed records for the last 5 years "retroactively." During investigations, AI-supported systems compare average square meter prices in the area, bank loan amounts, and comparable market values. Transactions where the difference is inconsistent with the natural course of life (shown as too low) are automatically flagged by the system as "high risk."
Critical 15-Day Window: Act or Face Consequences
Official notifications have started reaching the parties of suspicious transactions (both buyers and sellers). These letters ask for the reasons behind the gap between the identified market value and the declared amount.
- Deadline: Exactly 15 days after the notification is received.
- Where to Apply: Audit Coordination or Revenue Management directorates under the relevant local Treasuries (Defterdarlık).
Radical Increase in Penalties: From 25% to 100%!
Previously, the penalty for under-declaration was 25% of the underpaid tax, and many took that risk. However, with the new law passed by Parliament in December, the rules have changed. Now, in addition to the tax difference, a "tax loss penalty" of 100% (the full amount) is imposed. In other words, the fee amount intended to be saved is recovered manifold with penalties.
What Should Be Done to Avoid Grievances?
If you believe your declaration is low or if you haven't received a notification yet, you have the opportunity to pay the difference without a penalty by filing a "Repentance Declaration" (Pişmanlık Beyannamesi). However, if you have received the notification, it is vital to prove your justified reasons (poor condition of the house, urgent cash need, etc.) with documents within the 15-day period.
