Evaluation of reconciliation in the solution of tax disputes

Disagreements derived from taxation between tax administration and taxpayers can emerge in any phase of taxation process. There are two ways to resolve these disagreements emerging from various of reasons; in administrative ways and in judicial phase. This study deals with the institution of conciliation, which is one of the resolving ways in administrative phase of tax disputes, and its effectiveness. The conciliation is an establishment that was added to our Tax Procedure Code by Law No.205 in 1963. Justification for the Law No. 205 is declared to encash the public will rapidly, to resolve the controversies between administration and taxpayers and to alleviate the workload of justice. In evaluating the effectiveness of institution in resolving the disagreements, we emphasize to what degree the goals are achieved and to what degree they are far away. In the first chapter, the concept and the reasons of emerging of tax disagreements are explained, and the changes in institution of conciliation by laws and regulations issued until 1963, which is the year it got into practice. Also we give place to applications of institution of conciliation in various countries. The second chapter deals with the application of institution of conciliation within the laws and regulations in this subject. In the third chapter, we touch on the beneficial sides of conciliation for administration and taxpayers, and criticism to the reconciliation establishment. Also, the results of the conciliation interviews in the past are evaluated on the strength of statistical data of conciliation results. In addition, some recommendations are made for the institution in order to work effectively, having regard to the problems in application of institution of conciliation.