Article 110 - Investigation and Settlement in Tax Evasion Cases

If there is evidence with the Tax Administration of committing one of the tax evasion crimes stipulated by Law, the matter is presented to the Minister or the Minister’s delegation to obtain approval for referral to Public Prosecution. The Tax Administration shall send all paper and documents related to the tax evasion crime to the Public Prosecution for appropriate action.

The Tax Administration may offer a settlement or acceptance with any person who has committed one of the tax evasion crimes stipulated by Law, in accordance with the following conditions and controls:

1. Payment of all Tax Due and administrative fines for the periods concerning the tax evasion.

2. Payment of a penalty equivalent to the amount of tax evaded; in the case of a repeat offense, the fine shall be double the amount of tax evaded.

3. The Tax Administration is responsible for collecting these amounts.

4. A memorandum of settlement is prepared between the Tax Administration and the Person who committed the crime being settled.

5. The settlement documents are presented to the Minister or the Minister’s delegation for approval, and the settlement is not considered valid until it is approved by the Minister or the Minister’s delegation.

6. The Tax Administration shall notify the relevant authority, as appropriate, of the approval of the settlement so that it can take the necessary actions resulting from the settlement, whether to refrain from initiating criminal proceedings, to dismiss them, or to suspend the execution of the punishment.

7. Any other procedures or controls established by the Tax Administration.