The effects of tax inspection on tax losses and evasions in Turkey

The state is obliged to carry out certain expenditures in order to meet the shared needs of society. As is known, the most important source of funding is from taxes. With regard to public finance, the calculation of taxes, the primary source of income for the state in our country, is based on the principle of personal declarations made by taxpayers, as is the case in other modern states. Thus, with respect to a reliable taxation system, the ability of the Tax and Revenue Office to investigate and ascertain the accuracy of tax declarations made by taxpayers is of the utmost importance. Hence the need to verify the degree of accuracy and veracity of the declarations made by taxpayers arises at this point. Tax inspection is the most effective means of tax control in a country such as ours, where taxation is based on the principle of individual declaration. The tax inspectorate, which bears great importance in the determination and prevention of tax loss and evasion, is included in the Tax Procedure Law no. 213 of the Turkish taxation system. The aim of this study is to examine the structure of the tax inspectorate set up in the framework of the Tax Procedure Law, to evaluate its effectiveness in preventing tax loss and evasion, which have reached serious levels in our country and to present a number of suggestions. Keywords: Turkish Taxation System, Tax Control, Tax Inspection, Tax Loss and Evasion, Effectiveness.