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Turkey’s Hidden Millions: AI Crackdown Targets Restaurants and Barbers in Tax Evasion Blitz

mehmet-simsek

Treasury and Finance Minister Mehmet Şimşek has put the spotlight on Turkey’s informal economy, calling out underreporting practices across various professional groups. Speaking on Kanal 7, Şimşek shared shocking figures from 2024 income declarations, emphasizing the growing use of AI technology in upcoming audits.

“Some Restaurants Declare Only 20,000 TL Monthly—Unacceptable”

Highlighting glaring inconsistencies between declared income and real market potential, Şimşek drew public attention to restaurants that reported just 20,329 TL in gross monthly income—despite being located in major cities and tourist hubs.

“This is unacceptable. It clearly reflects the size of the informal economy,” Şimşek stated, signaling tighter controls and digital surveillance.

Average Declared Gross Monthly Incomes by Profession (2024):

  • Actors/Actresses/Stunt performers: 157,265 TL

  • Musicians/Presenters: 136,900 TL

  • Pharmacists: 66,236 TL

  • Doctors (Private hospitals): 61,031 TL

  • Jewelers: 42,360 TL

  • Lawyers: 33,641 TL

  • Restaurants: 20,329 TL

  • Taxi Drivers: 12,961 TL

  • Snack Stalls: 11,529 TL

  • Markets/Bodegas: 10,149 TL

  • Minibus Drivers: 8,954 TL

  • Women’s Hairdressers: 4,729 TL

  • Men’s Barbers: 3,633 TL

The gap between lifestyle expectations and declared income is stark, especially in sectors known for high turnover and cash-based transactions.

AI to Lead the Crackdown on Tax Evasion

Şimşek outlined a new wave of audits powered by AI and data analytics, saying the Revenue Administration will undergo structural reform to combat underreporting.

“We’ll harness the full potential of technology to close every loophole. From AI algorithms to adaptive compliance systems, our fight against informality is just beginning,” he said.

The new strategy aims to track financial anomalies, cross-reference bank activity, and expose systematic tax evasion through real-time data.

A Warning Shot for Non-Compliant Businesses

With symbolic declarations no longer flying under the radar, businesses—especially in sectors like food service, beauty, and transportation—are now under intense scrutiny. The ministry warns that AI-based profiling, regional earnings comparisons, and surprise inspections will define the next phase of enforcement.

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