Authorities investigate tax discrepancies among high-earning artists

Authorities investigate tax discrepancies among high-earning artists

ANKARA
Authorities investigate tax discrepancies among high-earning artists

The Treasury and Finance Ministry has intensified its crackdown on tax evasion, targeting actors, singers and their agencies in a broad investigation.

The Tax Inspection Board (VDK) identified significant discrepancies in the income declarations of approximately 150 individuals, marking the latest effort to combat unregistered economic activity.

Authorities have ramped up audits across various sectors, now focusing on high-earning artists and their financial practices.

Initial findings suggest that many of these individuals and agencies, despite being in a high-income bracket, have significantly underreported their earnings.

The investigation involves a thorough examination of the tax filings, bank transactions, digital platform revenues, advertising earnings and other financial streams of artists and agencies.

Officials have flagged multiple cases where artists appear to be deliberately understating their income.

Some were found to have routed payments through intermediaries, such as family members or managers, to mask their actual earnings.

Discrepancies between declared income and bank deposits were among the key indicators that triggered the investigation.

As part of the probe, authorities are also scrutinizing the relationships between actors, singers, their agencies and the businesses they collaborate with.

The goal is to identify any structural methods used to evade taxes, particularly in entertainment contracts and performance-related earnings.

One actor was found to have concealed more than 100 million Turkish Liras (around $2,782,000) in earnings over the course of a year, underscoring the scale of potential tax evasion within the industry.

The 150 identified artists and agencies will be summoned by tax inspectors to explain the discrepancies between their reported and actual incomes.

Following this initial review, authorities will extend their analysis to 2024 income and corporate tax filings.

Additionally, the ministry’s Risk Analysis Assessment and Research (RADAR) System will cross-check declared incomes against expenditures to identify further inconsistencies.

Individuals whose spending patterns far exceed their reported earnings will be categorized as “high risk” and subject to further scrutiny.

Commenting on the investigation, Treasury and Finance Minister Mehmet Şimşek said, “Our objective is to ensure a progressive tax system where those who earn more contribute more. The improvements in tax revenues will be directed toward public welfare and economic stability.”

Şimsek also clarified that these audits are not intended as punitive measures but rather as a way to enhance tax compliance.

Investigation,