The Influence of tax penal system on prevention of tax crimes in Turkey

Ill ABSTRACT THE INFLUENCE OF TAX PENAL SYSTEM ON PREVENTION OF TAX CRIMES IN TURKEY M. Erkan ÜYÜMEZ Public Finance Major Branch Graduate School of Social Sciences, Anadolu University September 2004. Advisor: Prof. Dr. Fethi Heper In Turkey, as in most developed and under-developed countries, a tax penal system was established so that it prevents actions against tax laws and lost which are faced or almost faced by government because of tax lost. Major aim of tax penalties is providing to comply with tax law. In the extent of its succession level, treasury's damage could be diminished and honest tax payers' rights could be saved. From this view point, one expects that a tax penal system should affect to prevent tax crimes. Tax penalties have to be as to be frightening tax payers as severe so that Tax penalties have to be as severe as possible to frighten tax payers so that tax penal system could affect. A penalty has to execute certainly when a contradiction to law is assigned. Besides, punishment must be executed urgently. In addition, the same contradictions must be subject to the same penalties and the application must be fair for everyone. Effectiveness of a tax penal system also depends on some factors like efficiency of tax administration, tax auditing rates, tax conscience and tax moral, attitudes of courts and society with respect to tax and tax penalties. In this dissertation, the influence of Turkey's tax penal system on prevention of tax crimes deals with by various aspects. Section 1 studies theoretical pedestals of tax penalties; Section 2 analyzes tax crimes and punishments in comparative law and Turkey. Section 3 discusses whether Turkey's tax penal system has been affected to prevent tax crimes or not. In the conclusion part, proposals are mentioned by evaluating the study. Key Words: Tax Penal Law, Tax Crimes and Penalties, Tax Compliance, Deterrent Effects of Penalties, Tax Administration and Tax Audit