The taxpayer has 15 days from the invitation to explain; if the explanation is found adequate, no audit is carried out. If the underdeclared tax is declared within the invitation period, the tax loss penalty is applied at a reduced rate.
Source: 213 sayılı VUK m. 370
Related terms
Tax inspectionThe tax administration investigating and establishing the accuracy of taxes payable through the taxpayer's books, records and documents.Voluntary disclosureA mechanism under which no tax loss penalty is imposed if the taxpayer voluntarily corrects an incomplete or incorrect return before the tax administration discovers it.Tax loss penaltyA penalty imposed when tax is under-assessed because the taxpayer failed to fulfil tax obligations on time or fulfilled them incompletely.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Advance tax rulingA written explanation issued by the tax administration upon a taxpayer's written request about its own tax position or matters it considers unclear.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.
Last updated: October 31, 2026 · This definition is for general information only.