Türkiye Implements Advanced AI Technology to Strengthen Efforts Against Tax Evasion

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Posted by pallavi on 2024-07-02 09:06:27 |

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New Initiative Announced by Finance Minister

Türkiye's Treasury and Finance Minister, Mehmet Simsek, recently unveiled a groundbreaking initiative to combat tax evasion using artificial intelligence (AI). Following the successful examples set by countries like Italy and the United States, this initiative aims to enhance the efficiency and effectiveness of auditing processes. Simsek emphasized the critical role that AI will play in identifying instances of tax evasion, especially since many Turkish companies report minimal or no profits, which poses a challenge to the country's tax collection efforts.

Addressing Tax Collection Challenges

Minister Simsek pointed out that Türkiye is currently lagging behind other OECD countries in terms of tax collection relative to its economic output. To address this disparity, he is advocating for the introduction of a new bill that proposes additional taxes. This legislative effort is deemed necessary to stabilize Türkiye’s finances, particularly in the aftermath of last year’s devastating earthquakes, which had a significant economic impact.

Improving Compliance and Financial Health

The adoption of AI in tax audits is viewed as a crucial measure to enhance compliance and boost tax revenues. By leveraging advanced technology, Türkiye aims to improve its tax collection processes, ensuring that more businesses contribute their fair share to the economy. This initiative is not only expected to strengthen the nation’s financial health but also support its recovery and development efforts in the long term.

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