The causality between tax revenues and tax auditing system in Turkey

Thesis Name: The Causality between tax revenues and tax auditing systemin Turkey.Author Name:Serdar AYTEKİNABSTRACTNo matter how strong the correlation that connects the tax auditingand tax revenues is, the principle of causality between these two concepts isstill not clarified. This study aims to examine these concepts thoroughly withall their aspects and thus provide solutions to the problems stemming fromthem. The main goal of this study is to explain the principle of causalitybetween tax revenues and tax auditing and thereby explicate causality.Granger Causality Test and the law of causation between the taxrevenues and tax auditing were examined in the study. As Granger?s test forcausality displays a causal relation instead of a presumption, the coherenceof the variables had been tested. In order to assess the coherency the ADF(Augmented Dickey-Fuller) unit root test was applied. As a result of the unitroot test, it was seen that the variables were stationary both in the trend leveland at the intersecting quotient.By means of the Granger Causality test the goal of the research havebeen attained. Owing to the tax auditing system an increase in tax revenueshas been provided.