Turkey’s Revenue Administration published a Regret Declaration Guide on Wednesday, 21 August 2024, outlining the regret and correction scheme. The scheme enables taxpayers to voluntarily disclose illegal activities that have led to tax losses. By doing so, they can obtain relief from penalties associated with tax losses and the enforcement of evasion provisions.

The guide comprehensively addresses all facets of the scheme and includes multiple examples for clarity.

The tax types eligible for the scheme include income tax, corporate tax, VAT, special consumption tax, stamp tax, and others.

The guide explains:

  • The scope of the application of repentance and correction;
  • Who can benefit from the provisions of repentance;
  • Taxes falling within the scope of repentance and reform;
  • Conditions for benefiting from the provisions of repentance and reform;
  • Whether a declaration can be made with regret for a tax type other than the tax type related to the ongoing tax audit or referral to discretionary process;
  • The rate of regret increase and how to calculate it;
  • Consequences of violation of the conditions of repentance;
  • Explanatory information and examples are included on such topics.