Turkey’s Move to Hyperinflation Accounting May Exclude Banks (1)

Turkey may exclude financial institutions from its planned switch to hyperinflation accounting, Treasury and Finance Minister Mehmet Simsek said, a move that could support the state’s tax income.

“We will switch to inflation accounting, maybe we will exempt financial entities and leave them out of this,” Simsek told a parliamentary budget and planning commission in Ankara late on Tuesday.

He didn’t give further details on the scope of the exemption, but the broad definition could affect banks, brokerages and factoring companies, preserving a valuable source of tax revenue for the government.

“Hyperinflation is obscuring banks’ financial forecasting and valuation visibility, ...