Turkish Authorities Clamping down

[wolvesfan]

Just recieved this email from our rental company in Ovacik. Thought I should pass it on. My brother in law's (different)rental company has told him the same story.

Dear Owner,
It has become apparent that there are mobile workers, foreigners & smaller companies that are operating in the area without legal permits or declaration of their workers & earnings to the Turkish government.
The Turkish Authorities has approached companies in the area and insisted that we inform them, including taking photographs, of any one we consider is not a legally operating business.  In the next edition of the Land of Lights there will be an article giving details of what the Turkish authorities intend to do.  Any person or company caught illegally operating will have their name & company printed in further editions of the newspaper.
We run our company & employ our staff legally - we have a business bank account, business e mail address (not hot mail account) & declare our income to the tax office, our staff get paid directly into their bank accounts (as required by Turkish government/tax) and we pay tax & insurance for them - other small companies in the area don't and are thus able to undercut our prices.  The Turkish authorities are getting tougher every year on businesses & foreigners and you will no doubt have noticed the lack of foreigners working in shops, restaurants & bars for the last 3 years.  This year will be no different and those companies that don't operate legally there will be a heavy fine, closed down or deported if they are foreigners.
The Turkish Authorities are also clamping down on those owners that do not declare rental income & pay the required tax.  Over the last couple of years tax officials have been visiting complexes & villas and asking the guests who they have booked their holiday from.  If your customers declare they are a relative they will be asked to prove this, the authorities will also visit the utility companies and check receipts of water & electric usage at the property and decide how much rental income the owner is making.  Details on rental income declaration can be given to any owner by this company.

Regards

[mercury]

The regards at the end made me smile.

[Colin White]

Can't see any problem with this. If you make money in Turkey you pay tax in Turkey.

[Scunner]

It's also big news in February - as it was in February 2011, 2010, 2009, 2008 etc - there's nothing new here at all.

[ceni]

I wonder if the "powers that be" have finished with ALL the bigger Turkish companies like Hanel, Nicholas etc etc who do not declare taxes, employ Brits etc, cheat lie and scam......Would be nice to think they had, but I doubt it somehow!

[KKOB]

Seems like the Turkish Authorities have more repeats than the BBC.

[LeeGlo]

quote:Originally posted by Colin White

Can't see any problem with this. If you make money in Turkey you pay tax in Turkey.

I have no problem with your point, but what if the owner is being paid in the UK and declaring the income and paying tax in the UK. Turkey and the UK have reciprocal tax agreements. Don't they?

[grahamturner09]

As the post said if you make money in Turkey you pay tax in Turkey. The property is there not in the UK so tax should be paid there.

[markaren]

Sounds like someone is trying to justify an increase in prices ......

[Ovacikpeedoff]

I do not think there are many owners in the UK declaring the income to HMRC or declaring it in Turkey for that matter. Legally you should declare it in both countries and they both will get some tax. You do not have to pay twice but you will almost certainly have a liability in the UK even if you have not earned enough rent in Turkey. The allowances in Turkey are much better than the UK.

With regards to tax it is not onlywhere you make the money ,where you are resident is also important. Anyone resident in Turkey who have a house in the UK that is rented should declare that to the Turkish tax authorities and HMRC.