Legal Consequences of Using Fake (Naylon) Invoices

 

 

Issuing or using fake invoices is subject to severe sanctions under both the Tax Procedure Law and the Turkish Penal Code. Individuals who issue or knowingly use such fraudulent documents may face the following penalties:

 

• Imprisonment: Those who issue or use fake invoices may face imprisonment from 1 to 3 years.
• Tax loss penalty: If a tax loss occurs, a penalty equal to three times the amount of the unpaid tax may be imposed.
• Damage to commercial record and reputation: The commercial activities of those involved may be investigated, and their trade records may be adversely affected.

Since fake invoices harm public tax revenues, they are subject to strict audits. Especially high-value fraudulent invoices may lead to comprehensive investigations.

 

 

Fake Invoice Penalty: How Much and Who Does It Cover?

 

A fake invoice is a document issued or used for a transaction that never actually took place. When such invoices are detected during financial audits, they lead to serious legal and financial consequences.

 

 

Who Can Be Penalized?

 

• Individuals who issue fake invoices
• Businesses that knowingly use these invoices
• Responsible parties who overlook or facilitate such actions in accounting processes

 

What Are the Penalties?

 

• Imprisonment: Issuing or using fake invoices may result in prison sentences ranging from 3 to 5 years.
• Monetary penalty: An administrative fine equal to three times the lost tax may be imposed.
• Legal proceedings: The relevant individual or company may be subject to court proceedings, and their commercial registry record may be negatively affected.

These penalties may cause serious financial and legal consequences for both the issuers and users of fake documents.

 

How to Identify a Fake (Naylon) Invoice: Key Warning Signs

To detect a fake invoice, attention should be paid to the following indicators:

• Incomplete or incorrect company information: Errors in company name, address, or tax number.
• Non-existent transactions: The goods or services stated on the invoice were never actually delivered.
• Unusually low prices: Prices significantly below market value may raise suspicion.
• Improper invoice format: A non-standard or unprofessional layout may indicate forgery.
• Errors in tax number or company stamp: Incorrect or invalid tax numbers and stamps should be carefully reviewed.

If there is any doubt, consulting a financial advisor or legal expert is strongly recommended.

 

 

 

Examples and Common Uses of Fake Invoices

 

A typical example of a fake invoice is a document issued for goods or services that were never actually provided. For instance, an invoice created for a non-existent transaction may be used to artificially increase expenses and reduce taxable income.

Some individuals or businesses attempt to gain unfair tax advantages by using such methods. However, when detected during audits, both the issuer and the user may face severe penalties.

 

 

What Is a Shell (Naylon) Company and How Is It Identified?

 

A shell company is an entity established primarily to conduct fraudulent transactions or evade taxes, often without engaging in genuine commercial activity. These companies may:

• Issue fake invoices,
• Document fictitious transactions,
• Contain inconsistencies in financial statements.

They may be uncovered through discrepancies in tax declarations, suspicious transaction volumes, or irregular documentation.

 

 

Fake Document Crimes Under the Tax Procedure Law

 

The Tax Procedure Law clearly defines issuing or using fake documents as a criminal offense. Within this scope:

• Acts causing financial loss to the Treasury constitute criminal liability.
• Both administrative fines and imprisonment may be imposed.
• Additional tax assessments with penalties may be applied following tax audits.

Because such offenses damage public finances, they are subject to strict supervision and enforcement.

 

 

Tax and Legal Impacts of Using Fake Invoices

 

From a tax perspective:

• Penalized tax reassessment
• Tax loss penalties
• Late payment interest

From a legal perspective:

• Imprisonment
• Criminal record risks
• Damage to commercial reputation

Moreover, fake invoicing practices undermine trust in the economic system and negatively affect the overall business environment.

 

 

Tips to Avoid Using Fake Invoices

 

• Verify the tax registration status of companies you work with.
• Do not issue invoices without genuine commercial transactions.
• Conduct accounting processes through qualified financial professionals.
• Seek legal advice in case of suspicious transactions.