After the Minister of Treasury and Finance, Mr. Nureddin Nebati, said that ‘tax inspectors will go down to the field’ during a meeting with some economists and academics, Ministry officials took action.
Inventory and price audits have started throughout Turkey. Tax inspectors went down to the site and began to conduct a de facto – unregistered inventory audit.
It is said that these inspections will continue until the end of June 2022.
According to the information obtained from the taxpayers, actual inventory studies have been started to be carried out at the taxpayers’ workplaces by the tax inspectors affiliated to the Board of Tax Inspectors.
WHY IS INVENTORY CONTROL IMPORTANT?
As the product types increase in companies, inventory becomes important. A separate inventory management is required in companies. With Inventory Control, management processes and profitability levels are examined. The actual inventory counts, the products in the mevut inventory of the enterprise and the inventory items in the accounting system are checked. If there is a lost cover or irregularities, their detection is carried out. Comparison of actual inventory and recorded inventories is important for the detection of missing persons of enterprises. Identifying and evaluating risks related to inventory differences is important for every business.
In addition, Enterprises constantly conduct inventory so that they can also be effective in determining the optimal stock levels and the level of inventory they need. It is also very valuable in terms of reducing the costs of inventories and profit planning in enterprises. Inventory discrepancies must be investigated. In inventory audits, it is necessary to review inventory supply chains, storage conditions, inventory movements and processes.
WHAT DOES THE TAX INSPECTOR ASK ABOUT STOCK INSPECTIONS
1-Does your company have any other branches, places of sale, warehouses, warehouses, warehouses, workshops?
2-As of this day, your company owns or leases commercial raw materials, finished products out of storage places belonging to inventory counts, etc. whether there is a stock of storage areas and third parties by the means of,
3-Are there any inventory items that were sold to your company at the time of inventory inventory as of today, but are included in the accounting records and have not been shipped yet, or have been issued a certificate despite not being included in the inventory and therefore not reflected in the accounting?
4-As of this day, your company belongs to other people or companies during the actual determination of commercial goods, raw materials, and finished stocks, and for various reasons (for processing by escrow, pledge, consignment, or subcontractor) do you have any inventory items belonging to someone else at your workplace?
5-as of today, your company, commercial goods, raw materials and finished goods stocks during the actual determination of your company or person belongs to and luggage, consignment, pledge, or institutions that are sent to other people or commercial goods for processing, raw materials and finished goods stock items are there?
6- As of this day, during the determination of commercial goods, raw materials and finished products of your company, are there any inventory items that have not been actually put into operation yet and are not included in the inventories or have not been certified despite being included in the inventories and have not been reflected in the records for these reasons during the purchase period records?
7- As of today, your company is being asked whether there are any refunds for commercial goods and / or finished products transferred from 2021 and / or bought and / or sold in 2022, if any, how these returned goods were returned and / or returned, and how they were shown. It is asked whether the finished product that does not enter the inventories when it is returned is a commercial product, how and in what way do they enter the inventories and are shown?
8-Do you have a commodity that has lost its value due to disasters such as fire, earthquake, flooding or for reasons such as deterioration, decay, destruction or theft in your company’s 2022 accounting period and/or as of today?
9-It is asked whether there is a commodity specified in the ledger records or the recorded inventory study of your company during the 2022 accounting period and/or as of today, but with a different qualification.
WHAT DOES THE TAX INSPECTOR DETERMINE IN THE ACTUAL INVENTORY WORK
1-The actual inventory has been made at the taxpayer’s address together with the company’s official by counting, measuring and weighing the following goods, and the current commercial goods, raw materials and finished product inventory items are as follows in terms of product type, brand, and quantity;
2-The most recently used copies of the commercial goods, finished goods and raw materials sales invoice and consignments submitted by the Taxpayer Institution as of October 20, 2022 are attached.
3- The most recently used copies of the invoice for the purchase and shipment of commercial goods, finished products and raw materials submitted by the Taxpayer Institution as of October 20, 2022 are attached.
4-Actual inventory will be carried out with the participation of the Taxpayer Institution official (plant, place of production, warehouses, etc.) the places were personally visited and examined, and the places where the products subject to the actual inventory were stored at the address they were going to were determined with the participation of the taxpayer institution official.
5-Actual inventory has been made at the Company’s Headquarters and information about the inventories of the following products has been requested from the taxpayer institution authority and the information requested by the company official has been provided. Accordingly, the Inventory information of the Registry is as follows;
6-The end of the period inventory list dated October 31, 12, 2021 and the end of the period list dated April 18, 2022 were obtained by the company official in the annex to the minutes.
7-Information about the sales price of the products in stock has been requested from the taxpayer institution authority of all the products located at the company’s address and actual inventory work has been done, and the requested information has been provided by the company authority and the information is as follows;
8-The taxpayer official has been asked if there are any issues that you want to add or object to related to the issues contained in this minutes.
There may be mistakes and tricks in preparing financial statements in every period and in every country. We should never forget the fact that Company employees and Company Managers can make up inventory both on a transactional basis and on the basis of general stock levels and prices.
In order for the economies of countries to grow in real terms and for healthy Financial Statements to be formed, enterprises must be frequently audited by the state authority and independent audit organizations.
Duties and responsibilities should be given to our professional community, which acts as a Financial Advisor and Certified Public Accountant, as well as Public personnel auditors, in addition to the Tax Inspector of the Public and other Private audits of Companies. Thus, both public savings will be achieved and market experience will be reflected in the audits.
Our community has always tried to fulfill its assigned tasks in the best way and we believe that the market will improve if the necessary authority, attention and trust are given to our colleagues.
Our wish is that a system in which the informal economy is minimized in the world and in our country, where there is no informal employment, honest businesses are rewarded, dishonest businesses are punished is established as soon as possible.
Ahmet GÜNDÜZ – YMM