Didim Today

Declaring a lower purchase price and registering the property at less than its real and actual purchase price, although tempting because both parties will pay less in sale/purchase tax, does carry a significant risk. In the case of declaring a lower sales price, the return on a sale will be higher and, thus, the buyer will have to pay a much higher tax when the property is sold later on. If the relevant administrative offices detect the evasion, both the seller and the buyer will have to pay 165 percent of the difference between the real value of property and the declared sale price.

Additionally, both the buyer and the seller will also be subject to a fine for the loss of tax calculated based on the amount of the difference between the real value of property and the sales price, which will be charged according to a default interest rate.

Let’s turn back to the letter: “Can you advise me on how I can go about getting this error rectified? I am aware that technically I am at fault, but can assure you there was no intention on my part to declare a false purchase price.

I am returning to Turkey shortly and will then have the opportunity to examine any receipts sent to my Turkish address to see what exactly was paid in the way of taxes. It is then my intention (with the aid of a Turkish speaker) to go to the tapu office/tax office and explain the situation to them and hope they can appreciate that I did not intend to be in a default situation and do wish to ensure all proper taxes are paid to the government.

When I return to Turkey and examine receipts, etc., I will have a clearer picture of what has happened. As I mentioned before the final transactions -- payment of taxes, etc. -- were handled by an agent so any fault may lie there. I would very much appreciate if you could set out in general terms how a buyer goes about getting an incorrect ‘satış bedeli’ put right. I am sure many of your readers are in a similar position to me.

While some people might be happy to pay less tax than is due, I am not one of them.” You mention that you handed over enough money to cover all expenses, including levies, charges and taxes, to a middleman. In this case, I hope that you have kept the bank transfer statements or receipts of the money that you handed over to the middleman so that you can prove the understanding that you had with him.

Although the failure of the middleman does not relieve you of your responsibility, at least you will have the chance to pursue legal action against him if a fine is imposed on you for the tax evasion committed by him on your purchase.

Turkish tax procedural law does offer a solution for tax evaders who want to correct their position. All you need to do is to apply to the tax authority with a statement showing the details and explain what has happened. In your declaration you should also prove how much you paid for the property with correct figures.

In any case, the authorities will impose a penalty and request the payment of any remaining levies that have not been paid. You will have 15 days to pay the imposed amount following the submission of the tax correction documents to the relevant authority, which in this case is the tax office.

Berk Cektir http://www.berkcektir.av.tr/ The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner. http://www.todayszaman.com/ This e-mail address is being protected from spambots. You need JavaScript enabled to view it