Turkey's Tax Inspection Board launches AI-driven VDK-MİHENK system

The Tax Inspection Board (VDK) has launched the VDK-MİHENK system, an artificial intelligence and big data analytics platform designed to enhance central risk analysis in tax auditing. The system processes financial data, including e-documents, to evaluate relationships between prices, costs, sales volumes, and other economic indicators.

A primary objective of the system is to more effectively identify risks related to transfer pricing, arm's length principles, and the shifting of profits between related parties through pricing strategies. Unlike traditional methods that rely on limited samples, MİHENK analyzes large datasets of real economic transactions, allowing it to detect both overvalued and undervalued transactions.

The system is capable of performing comparisons at national, provincial, district, and regional levels. These geographic breakdowns are intended to help analysts better understand how different regional and economic conditions impact transfer pricing comparability. A second phase of development is planned to introduce sectoral profit margin analyses, enabling the evaluation of taxpayer profitability alongside transaction prices.