Türkiye uses AI to combat tax evasion

Highlighting the issue, Simsek noted that over half of Turkish companies report losses or minimal profits, indicating potential tax evasion.

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Türkiye plans to use AI to combat tax evasion, following the example of countries like Italy and the US. Treasury and Finance Minister Mehmet Simsek announced the initiative, emphasising the role of AI in auditing companies. The technology is expected to help identify tax evasion, as many Turkish companies report minimal or no profits.

Simsek highlighted thatTürkiyey lags behind other OECD countries in tax collection relative to its economic output. The minister is advocating for a new bill to introduce additional taxes, which he argues are necessary to stabilise the nation’s finances, especially after the significant impact of last year’s earthquakes.

Adopting AI in tax audits is seen as a crucial step in improving compliance and increasing tax revenues, which are essential forTürkiyey’s financial health and recovery efforts.