The tax loss penalty is calculated on the amount of tax lost; the rate is increased in cases of tax evasion. The amount of the penalty may change through mechanisms such as repeat offences, settlement and reduction.
Source: Tax Procedure Law No. 213 Art. 344
Related terms
Irregularity penaltyA fixed penalty imposed for failure to comply with the formal and procedural provisions of tax laws, regardless of whether tax revenue was lost.Tax inspectionThe tax administration investigating and establishing the accuracy of taxes payable through the taxpayer's books, records and documents.Tax settlementAn administrative route enabling the taxpayer and the tax administration to reach agreement on assessed taxes and penalties before litigation.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.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.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 22, 2026 · This definition is for general information only.