The evaluation of tax security measures and tax planning in terms of Turkish taxation system: A sample of taxes on income

The most important sources that states refer to in order to perform the task of providing public services are the taxes paid by taxpayers. The development of public needs, the increasing population and the adopted social state understanding increase also the services that states need to provide. In order to ensure the efficiency in taxation it is necessary for tax payers and responsibles to fulfill their duties accurately. Taxes are the source of income for states; however, they are cost elements for enterprises. For that reason, tax security measures in tax legislation are important. The increasing competitive environment along with the globalization draws attention to the concept of tax planning and its international dimensions for enterprises. Enterprises aim to maximize their profits and minimize their tax burden which are cost elements through tax planning. The purpose of this study is to evaluate tax security measures and tax planning in Turkish Tax System in terms of taxes on income. Tax planning is a legal process that taxpayers appeal to by benefiting from the tax advantages in order to reduce their tax burden. However, frequent changes in legislation and the lack of clarity in laws make tax planning difficult. This may lead taxpayers to agressive tax planning such as tax avoidance and tax evasion. Therefore, it was concluded that important tax security measures were insufficient and the Turkish Taxation System should be equipped with the tools to provide autocontrol.