Calis Beach and Fethiye Turkey Discussion Forum
Other Local Resorts & Areas => Fethiye Turkey Discussion Forum => Topic started by: GordonA on December 14, 2013, 12:03:04 PM
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www.dailymail.co.uk/news/article-2523474/Brits-holiday-homes-Spain-France-banned-renting-tourists.html
How long will it be before the powers that be in Turkey jump on this money making band-wagon. I know this will not just affect British holiday makers, & has, seemingly, been 'normal' practise in Spain for some time, BUT, Turkey just seems to need the slightest provocation, under the present regime, to do as much damages as possible to their Tourist Industry !!
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Nothing would surprise me but it will be a nightmare to administer.
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That is as maybe, Stoop,old boy, BUT, if there is money involved, & Erdogan Bey can squeeze any cash out of the very people ( tourists ), who have gone a helluva way toward making Turkey the financially viable country which it is, he will find the way. As they say ; yavaş yavaş !!
Now, all I need wait for, is for 'Rimms' to come along & inform me that he loves me, but I'm talking a whole crock of 'Bull-dust' !! ;)
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As Stoop says, difficult to administer but as GordonA says, the government will do everything possible to squeeze money out of people. There was talk before about taxing people who rent their property but nothing came of that. I am sure that Mr. Erdogan will have lots of surprises up his sleeve in the future. So many foreigners have contributed to the Turkish economy and as we all know, we take nothing away with us except a sun tan and happy memories.
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How long will it be before the powers that be in Turkey jump on this money making band-wagon.
They already have done - various measures being employed to seek out potential undeclared rental income and arbitrary (and sometimes hefty) assessments already being dished out by the taxman.
JF
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Glad we decided not to rent our place to be honest.
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As Stoop says, difficult to administer but as GordonA says, the government will do everything possible to squeeze money out of people. There was talk before about taxing people who rent their property but nothing came of that. I am sure that Mr. Erdogan will have lots of surprises up his sleeve in the future. So many foreigners have contributed to the Turkish economy and as we all know, we take nothing away with us except a sun tan and happy memories.
The tone of your reply suggests you are condoning evasion of tax on income earned within Turkey. Would you feel the same about, for example, an eastern European doing the same in the UK?
JF
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To be fair - those who rent out and make a profit should declare it as taxable income (assuming it is taxable based on their costs etc). I have no problem with that at all.
What gets me is what they are saying in France and Spain which is basically - 'you are undercutting hotels etc and we want you to have to abide by the same rules as them. If that means lots more hops to jump through then tough'
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To be fair - those who rent out and make a profit should declare it as taxable income (assuming it is taxable based on their costs etc). I have no problem with that at all.
I don't have the details to hand just now, but the allowances claimable for (touristic) landlords are pretty fair. I know for a fact (we rent out property in both UK & TR) that they let you away with a lot more than HMRC does. At the end of the day it is up to the individual, take the risk or keep it legal(ish), just like every other business in Turkey.
What gets me is what they are saying in France and Spain which is basically - 'you are undercutting hotels etc and we want you to have to abide by the same rules as them. If that means lots more hops to jump through then tough'
No, thats what the Daily Mail and other tabloids are saying - the situations in France and Spain is completely different and the thick feckers who masquerade as journalists for these rags are simply to lazy to their research.
JF
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It's already on the cards.
http://www.yellali.com/news/article/34/new-regulations-for-renting-out-your-turkish-property
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JohnF, sorry you felt that I was condoning this, I wasn't. It is only fair that people assume their responsibilities and pay their dues. I know that the law in the UK used to allow £4,250 (or thereabouts) before you were due to pay tax etc. on a rental property. We don't know what the threshold would be for rental in Turkey. I lived and worked in Greece for many years and I am well aware of what happens to a country when people don't pay their taxes etc. Look at the situation Greece is in now.
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Turkey would be in a lot better position with their taxes if they only put in the effort and got their own people to pay taxes too.......FFs it's not rocket science! someone high up knows that all these mega building companys etc are getting a huge amount MORE then thy are paynig in taxes !
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"I know that the law in the UK used to allow £4,250 (or thereabouts) before you were due to pay tax etc. on a rental property."
Ray1951,
That was the allowance on the 'rent a room scheme', a lodger basically.
There is/was no tax allowance on rental property for individuals apart from your personal tax allowance if you have a low or no other income.
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In the days of much lower declared values on tapus, I understand the Turkish tax men around Fethiye were looking at transactions where developers and agents were taking (with Power of Attorney) large sums from client bank accounts to pay for properties. Nothing unusual in that, but the taxman cunningly saw that the agent/builder took (say) £50,000 from the customer's bank account to pay for a property which clearly showed it's value on the official tapu as (say) £17,000.
They asked the agent/builder what happened to the other £33,000 they withdrew using PoA, and there really is no worthy reply to that. The taxman would then confirm that as the money could not be accounted for, it can only be put down as profit, and a tax demand was made for the sum in question. It is pretty unfair as they didn't get the money, but had no way of explaining it to the satisfaction of the taxman.
The taxman, of course, knew exactly where the money had gone and I am sure enjoyed it all immensely.
When collecting taxes is the job in question, this makes hugely greater return per taxman hour than turning up mob handed 3 or 4 times to try and catch a family on holiday - in the pursuit of the income tax due on £250.
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Took me a while to get my head around your statement Keith, but I think I am almost there !! Explain just one point, how on earth does the Tax Office get the information regarding the Power of Attorney ?
As you are aware, I am not a stupid person, but surely the legal ramifications of Powers of Attorney would not normally come into the remit of Tax Officers, or would it ? ??? :o
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I am not an expert on the tax ways of Turkeyshire Gordy but I think they are (specifically when investigating the party empowered rather than the buyer). As it was explained to me, the Turkish taxman has powers to do what ever he likes and is often seen as more feared than the police. A bit like the UK then ;)