Corruption - Turkish tax system of relationship and strategies anti - corruption

Corruption is defined as "the misuse of entrusted power for private gain". It is a global problem. Corruption is illegal and/or immoral actions that cause partially or entirely lose of functioning of economic, political, and social system. This study focuses specifically on the effects of corruption on economic system. Recent studies have clearly showed that the phenomenon of corruption cause economic crises in particular and extravagance of resources in general by damaging macroeconomic and microeconomic foundations. In Turkey, causalities between corruption, tax revenues, direct-indirect taxes, tax burden and tax audit ratios variables are tested for 1985-2007 period and, the direction and size of these relationships are determined by using econometric VAR model. Empirical results indicate a bi-directional causality relation between corruption variable and tax burden, direct-indirect taxes. An unidirectional causality determined corruption to tax revenues and tax audit to corruption. Results disclose the most effective variable is tax burden on long term fight against corruption. It is attached great importance on fighting against corruption either national or global level. Fighting against the unlawful action requires continuity and application in every field. Independent media and an active civil society are vital if the fight is to be effective. Corruption is more easily detected in a transparent society and transparency can therefore also have a preventive effect. The most important thing is to determine the strategies of the struggle. It is possible to achieve success with a determined fight supported by public.