Evaluation of the regulations in the Tax Procedure Law to reduces the effect of inflation

In this study, which is prepared to evaluate the regulations in the tax procedure law in order to reduce the inflation effect, the literature review method is used. In this context, the studies in the literature were examined and evaluated. The population and sample of the study consist of articles and theses prepared within the framework of the subject. As a result of the review and evaluations made in this context; it is thought that the evaluation of the regulations in the Tax Procedure Law to reduce the impact of inflation provides important outputs about the complexities and nuances of managing inflationary pressures within the tax system. The main conclusion of the study is that Turkey's high and persistent inflation rates pose significant challenges to the country's tax system, eroding the real value of tax revenues and distorting the fairness and efficiency of the tax regime. The study results also show that Turkey has implemented several mechanisms in the Tax Procedure Law to address the problem of inflation. One of the primary measures is the periodic adjustment of certain tax-related figures such as income tax brackets, exemption limits and deductible expenses based on revaluation rates set by the government. This revaluation process aims to ensure that taxpayers are not unduly affected by inflation-driven increases in their nominal income. Furthermore, the Tax Procedural Code allows for the indexation of certain tax liabilities, including penalties, late payment interest and tax base amounts for certain taxes. This indexation mechanism links these tax liabilities to inflation rates, preventing their real value from eroding over time. However, research findings have shown that while these measures provide some relief, they fall short of fully neutralizing the effects of inflation on the tax system. Revaluation rates and indexation factors are often set at levels lower than real inflation rates, leading to a gradual erosion of the real value of tax revenues and a shift in the tax burden across different income groups. Moreover, the paper highlights the complexity and inconsistency in the application of these inflation adjustment mechanisms across different tax types and provisions. By understanding the mechanisms, concepts and models discussed in the paper, policymakers and tax authorities can better cope with the challenges of inflation and maintain the principles of fairness, efficiency and transparency in tax administration.