The effect of internet use to tax revenue: Turkey

Internet is accepted as one of the most important information and communication technologies in our age. Internet is considered to be a valuable source of information, also has opened a new era in the field of communication and has brought significant income for countries. Internet impacts positive and negative on current tax revenues by operating in virtual environments instead of physical environment. On the other side, global trade causes some issues such as, which country will have the right of taxation and that situation create uncertainties on tax revenue among countries. Multinational companies are designing their products in abroad, producing in another country; production is sold in other country. Thus, under favor of electronic trade can refrain from taxes that are imposed by performing profit transfers. In this regard, the creation of an international internet law has become a necessity. Aim of this study is to investigate and inform that internet usage how to impact on tax in the frame of positive or negative. The country's national income share in the revenue obtained will be taken into, when determining the positive and negative effects of internet usage. The use of internet in business will be investigated by taking into account social variables from the beginning until now. In this study, historical development of the internet will be discussed and also defined internet concept. Moreover, the tax impact of the internet will be evaluated with an empirical study by taking into consideration of national and international effects on positive and negative effects on tax revenues.