Special irregularity penalty is an administrative fine imposed in cases where taxpayers violate their document preparation, document receipt, bookkeeping and other formal tax duties. It is regulated in detail in Article 353 of the Tax Procedure Law No. 213. Even if no tax loss occurs, only violation of formal duty may require special irregularity penalties.
Situations Where Special Irregularity Penalties May Be Imposed (VUK art. 353)
1) Violation of the Obligation to Issue/Receive Documents (VUK art.353/1)
- Not issuing or receiving invoices, expense slips, producer's receipts
- Failure to issue or receive retail sales voucher, payment recording device voucher (cash register voucher), check-in/passenger ticket, packing slip
- Not issuing a freelance receipt
- Violation of the obligation to issue electronic invoices, e-archive invoices
The penalty imposed for these acts is a fixed amount determined according to the revaluation rates for each document, regardless of the amount of documents not given or received. However, there is a ceiling on the total penalty that can be imposed for these acts in each calendar year.
2) Violation of Book and Record Obligations
- Not having the books certified
- Not keeping the books on time
- Not submitting books and documents
- Failure to submit the books to the relevant finance office within the legal period
3) Other Formal Irregularities
- Not keeping/hanging a tax plate
- Violating notification obligations
- Breaching the obligation to provide information
- Violation of the obligation to use a payment recording device
Amount of Fine
Special irregularity penalties are updated every year according to the revaluation rate. Amount of penalty:
- Depending on the nature of the taxpayer (1st class trader, 2nd class trader, freelancer, etc.)
- Type of contradiction
- Relapse situation
Varies depending on. In case of recidivism, the penalty is increased by certain percentages.
Difference Between Special Irregularity and General Irregularity
| Criteria | General Irregularity (Art. 352) | Special Irregularity (Art. 353) |
|---|---|---|
| Acts | Declaration, registration, notification violations | Document issuance/receiving, e-document violations |
| Amount | Lower fixed penalties | Higher fixed amount per document |
| Discount | VUK art.376 discount is applied | VUK art.376 discount is applied |
Right to Discount (VUK article 376)
In case of special irregularity penalty, if the right to file a lawsuit is waived and the penalty is paid within 30 days from the notification of the notice, a 50% discount will be applied to the penalty. In case of repetition, the discount rate decreases to 25%.
Compromise
According to VUK Additional Article 1, a portion of special irregularity penalties above a certain amount may be subject to reconciliation. Application for post-assessment reconciliation must be made within 15 days from the notification.
Cancellation Case in Tax Court
An annulment lawsuit can be filed in the tax court against a special irregularity penalty. The period is 30 days from the notification (İYUK article 7).
Reasons for Cancellation
1) Absence of an Act Requiring Punishment
Even if the document is shown as not issued, the taxpayer can prove that the document was issued, received or given. In this case, the penalty is cancelled.
2) The document must be prepared in accordance with the law
In the transactions shown as "no document issued" in some audit reports, the document was actually issued but was deemed "non-existent" due to formatting errors. Formal errors are not considered as absence of documentation.
3) Notification Disability
If the notice is not notified properly, the period will not run and this error may be highlighted when a lawsuit is filed. Notifications made contrary to the provisions of the Notification Law are invalid.
4) Authority and Form Disabilities
- Illegal preparation of tax audit report
- Missing mandatory elements in the notice
- Lack of authority of the authority imposing the penalty
5) Statute of Limitations
According to VUK article 114, the accrual statute of limitations is 5 years. The penalty must be notified to the taxpayer within this period; Otherwise, the accrual statute of limitations expires.
6) Penalty Account Injuries
- Imposition of repeated punishment without meeting the recidivism requirement
- Exceeding the annual penalty ceiling
- Full penalty applied even though a discount was requested
Special Situation in E-Document Penalties
Special irregularity penalties are also imposed on those who violate electronic document preparation obligations such as e-Invoice, e-Archive, e-Delivery Note, e-Producer Receipt. In this area especially:
- Issuing paper invoices even though you are a registered e-Invoice user
- Inability to issue e-Archive invoices (system failure, etc.)
- Shipments contrary to the obligation to issue e-Delivery Notes
The taxpayer's ability to prove actual and technical impossibilities in his/her claims will be decisive in winning the case.
Jurisdictional and Competent Court
- Assignee: Tax Court.
- Authority: The court where the tax office that imposed the penalty is located (İYUK art. 37).