The Independent Public Revenue Authority has issued the Circular POL.1209/2017 on December 20, 2017. With the help of POL 1209/2017, the Authority gives supplementary instructions on the submission of complaints about tax evasion fraud in income tax.
As stated in the circular, it has been accepted tax evasion of income arises when tax deductible income is hidden and not simple accounting differences, unrelated to such concealment. Again, in case of petition submission, it will be inspected whether the income tax exceeds one hundred thousand (100.000) euro per fiscal year or determined by the audit.
Besides, when the accounting gaps are for profit adjustment that occurs under the rules on intra-group billing, the conditions of tax evasion are not satisfied and no petition is filed to the Prosecutor.
As a consequences, any discrepancy in income tax for accounting differences such as, non-existent costs, fictitious, etc., the relevant provisions apply (Articles 55A , 66 and et seq. of KFD) and in this case, crime notification report needs to be submitted properly.
