The Tax Department is getting tough on tax dodgers.
The Istanbul Tax Department is getting tough on tax dodgers but is being clever about the way it does it. It has offered an amnesty to people who sold their property without paying capital gains tax. Under Turkish tax law a property owned and sold in less than 4 years is subject to capital gains tax. The amnesty excuses the people from interest and penalty payments but not the tax due. With tax rates of between 15% and 40%, depending on the financial gain realised, the potential tax recovery for the department could be significant.
The department has written to over 100,000 people who sold their property within the 4 year period. They have compiled the list from the register of title deeds.