Turkish authorities are aiming to further increase the institutional capacity for combating the informal economy and have changed the organizational structure of the Treasury and Finance Ministry to this end, according to a decision published in the country’s Official Gazette on Thursday.
In line with this, the General Directorate of Risk Analysis of the Treasury and Finance Ministry is to be transferred and brought under the umbrella of the Revenue Administration (GIB), according to a presidential decree.
With the transfer of the duties carried out by the general directorate to the GIB, a deputy president will also be exclusively assigned to this issue.
Risk analysis activities, which started within the presidency of the Revenue Administration with its establishment in 2005, were transferred to the Tax Audit Board with its establishment, and then added back to the duties of the GIB.
The General Directorate of Risk Analysis, established in 2020, on the other hand, undertook the task of researching tax evasion and unregistered economic activities and conducting risk analysis and evaluation studies to prevent them.
The general directorate has so far carried out studies to utilize advanced technology analysis tools and create an infrastructure supported by artificial intelligence algorithms. Studies were conducted with the Risk Analysis Assessment and Research (RADAR) System, which offers analysis capabilities through a single system.
The GIB also has significant capacity in the fight against the informal economy with its nationwide organization, strong IT infrastructure, and extensive database. It has created a strong data warehouse by continuously and instantly receiving data on tax-related transactions from declarations and notifications received from taxpayers, as well as from other parties such as the land registry, notary, registry, bank, e-commerce platforms and classified ad sites.
Treasury and Finance Minister Mehmet Şimşek told Anadolu Agency (AA) that the regulation in question was made to strengthen the institutional capacity of the Ministry.
“We are combining the strengths of the General Directorate of Risk Analysis, which operates in the field of risk analysis, and our Revenue Administration,” he said.
“In this way, we will achieve the specialization we aim for in risk analysis and maximize our data processing capabilities. With the new structure, an effective risk and compliance analysis system based on data mining, supported by big data and business intelligence applications, will be established,” he added.
Emphasizing that this arrangement will also save public resources by having two units responsible for the same issue operate under a single unit, Şimşek noted that they are also working on finalizing studies within the Revenue Administration to enable faster action on findings related to risk analysis.
The authorities have earlier underscored the importance of combating the informal economy while prioritizing disinflation and sustainable growth.
“We are strengthening our institutional capacity in the fight against the informal economy,” Şimşek said separately in a post on X.
