Turkey Embraces AI to Combat Rampant Tax Evasion

Turkey intends to use AI and algorithms in auditing enterprises to tackle tax evasion. More than half of Turkish enterprises report losses or "symbolic" profits, emphasising the need for greater measures. Turkey lags behind other Organisation for Economic Cooperation and Development (OECD) member states in terms of tax collection as a percentage of GDP.

Credit: Bloomberg

Following in the footsteps of countries such as Italy and the United States, Turkey intends to use advanced technology to combat tax avoidance and fraud.

In a recent TV interview with BloombergHT, Treasury and Finance Minister Mehmet Simsek stated that the country intends to progressively use algorithms and artificial intelligence in inspecting enterprises. Turkish officials seek to use cutting-edge technology to more effectively identify cases of misconduct.

Simsek noted a worrisome trend in which more than half of Turkish enterprises declare either outright losses or "symbolic" earnings. This highlights the urgent need for greater measures to combat tax evasion. Turkey now trails below 37 other OECD members in terms of tax collection as a percentage of GDP.

The minister underlined the significance of a new measure proposing the imposition of additional taxes. Simsek contends that these taxes are critical to ensuring the country's financial stability, especially in the aftermath of last year's terrible earthquake.

---

• Turkey plans to implement AI and algorithms in auditing companies to combat tax evasion.

• Over half of Turkish companies report losses or "symbolic" profits, highlighting the need for stronger measures.

• Turkey lags behind other OECD member states in tax collection as a percentage of economic output.

Source: BNN BLOOMBERG