The effectiveness of certified public accountants institution in tax inspection in Turkey from 1989 onwards

Taxes are the most important source to finance public expenditures. It is necessary to provide efficiency in collection of taxes for collecting taxes in full on time. Modern tax systems are based on the tax payers? declaration. According to based on declaration, tax payers declare their taxable income to the tax office by the tax return. Whether tax payers? declaration is true or not can only be revealed by the tax audits. Tax audit aims to determine whether tax authority and tax payers fulfill their responsibilities arising from tax laws in order to provide taxes for being paid on time. Tax audit commenced in Turkey with the establishment of the Board of Tax Inspectors in 1789. Currently, tax audits in Turkey are carried out by the central and local units of the Ministry of Finance. The tax audit carried out in Turkey can be categorized as collecting information, searching thoroughly intensive tax control and inspecting. Some problems stemming from the current structure of tax audit undermine effective and efficient tax audits. Financial table?s being proper and reliable for Ministry of Finance as a public institution posses huge importance. As depending on these tables, figures showing taxable value and thus tax are being calculated and this calculated tax is being assessing by notifying tax payer. Due to this reason, Ministry of Finance audits whether financial accounting information?s used for determing the nature of figures showing taxable value as proper are in accordance with tax legislation or not. This work of auditing is fulfilled both by it is own auditing personnel and certified financial consultants which are authorized with auditing. The development about the association of certified financial consulting in the world has an area in practice in Turkey. The work for legal regulation with respect to occupation of self employed accounting, self employed accounting financial consulting and certified financial consulting has gone on for a long time since the first years of Republic. Finally, the occupation of independent auditing has legal regulation with the application of law number 3568 and dated as 01.06.1989 of self employed accounting, self employed accounting financial consulting and certified financial consulting. The basic law which regulates independent auditing job and activities in Turkey is Turkish law number 3568 self employed accounting, self employed accounting financial consulting and certified financial consulting law. Turkish Law number 3568 is the essential law that regulates accounting professions and their activities. The emergence of association of certified financial consulting and certification procedure that is emerged through the law of occupation regarding legal arrangement is giving harm to characteristic of Independent Expert of member of occupation and is describing it as tax auditor