The headcount reported in monthly SSI premium declarations and in withholding tax returns is subject to cross-check by the state auditors. Therefore, inconsistencies between these declarations pose a risk.
It has been noted that state auditors have been forwarding random audit reports to related SSI Offices and seeking information from companies based on the cross-checked results.
This is a fairly recent practice given that inconsistencies between headcount reports in withholding tax and SSI declarations were not scrutinized before.
For example, honorarium payments to company founders are duly declared in stamp, income and withholding tax declarations respectively, and they would not be included in the SSI declaration as they are subject to BAĞ-KUR coverage. Now, companies should be prepared to explain scenarios, such as this one, if they are questioned in this matter.
Companies should pay attention to their declared headcount across different documents and should be prepared to explain inconsistencies if they receive an official inquiry letter from the related SSI offices. Unless companies reply to this letter in 15 days, they will be subject to a fine within the scope of article 86/7 of the law no. 5510.