Collusion and fictitious transactions in the Turkish Tax Law in the light of judicial decisions

In contemporary societies, states need public revenues due to the mission they have undertaken. Obtaining tax revenue by collecting taxes for the fulfillment of public services is the result of a long evolution that states have gone through. However, in addition to the collection of taxes based on the superior sovereign power of the state, there are also constitutional principles that protect individuals that prevent arbitrariness in taxation. The most important of these are the principles of equality and taxation according to financial power in the 1982 Constitution. In this context, there are some transactions in the Turkish tax system that cause loss in the taxes that the state needs while performing public services, and also harm the principles of taxation according to equality and financial power. These processes are collusion and fictitious. In the Turkish tax system, these transactions, which taxpayers and taxpayers undertake with the aim of avoiding or evasion tax by using their freedom of contract, are very important issues in terms of tax law, their identification, qualification and proof at the judicial stage. Due to the comprehensive and complex nature of tax legislation, these transactions occur in many different ways. Because of the dynamic nature of these transactions, new fictitious and collusion transactions may arise, therefore prohibiting these transactions within the scope of the legislation will not be a permanent solution. For this reason, it is necessary to have an effective and effective judicial system with correct qualification at the beginning of the efforts to prevent collusion and fictitious. To determine the content of fictitious and collusion transactions, to show how these processes are handled in judicial decisions, to contribute to the studies and because of the limited work done in the field of tax law, fictitious and collusion transactions have been determined as the research subject. Within the scope of the study, the concepts of collusion and veiling, the differences of these concepts from other similar concepts, examples of how these transactions emerged in the direction of judicial decisions and doctrine, and how these transactions would be proved were discussed.