The effect of tax misdemeanors and penalties on tax compliance: The case of Tokat province

While tax offences refer to actions in which taxpayers are subject to administrative fines if they do not comply with tax laws, tax compliance refers to taxpayers paying their taxes in full and on time. Tax compliance is of critical importance for states in terms of effective implementation of fiscal policies and sustainable financing of public services. High tax compliance ensures regular and reliable collection of tax revenues, which allows public expenditures to be met. Tax compliance is also important when it comes to tax offences, because taxpayers' compliance with their obligations contributes to the reduction of such offences and therefore penalties. The aim of this study is to examine the effect of tax offences and penalties on tax compliance in the province of Tokat. In particular, it aims to investigate the relationship between the frequency of tax violations, the frequency and nature of the penalties, and tax compliance. In the study, a 19-question survey was conducted for taxpayers in Tokat province. The results obtained from the findings were interpreted, and the points where tax violations and penalties were deficient in tax compliance were determined and some solution suggestions were made. Keywords: Tax Violation, Tax Violation Penalties, Tax Compliance