The role and effectivenness of income tax on decreasing unregistered employment

Public authority information referred to the informal economy activities that occur outside of the entire general terms. Such activities are within the unregistered employment. Indeed, the people with power of working will be out of legal procedures by their requests or by without their choices. This is the status of the financial, economic and social issues within the some array. At the beginning of this kind of problems in the informal employment is not to have enough social security rights. In addition, due to the loss of tax and insurance pays in terms of State financial difficulties also arise. Economically, causing unfair competition and an economic structure that leads to a product that standardization endured.Unregistered employment is one of the important reasons for the existence of tax loads can be specified. That applies to individuals registered in the State when running heavy loads on both employee and employer tax in terms of serious problems. In such a case the employer is running second in the informal employment preference and whether to get rid of tax path because of the unregistered dating from suspended loads. Hence the State's sales tax to create an income tax system that distributes the loads balanced way and work to promote his desire.In this study, the informal economy and informal employment concepts will be identified, their causes and effects on the great. Also in terms of the income tax regulations in various countries in the informal employment and the way of prevention is organized and information about arrangements in terms of income tax in our country is given. As a result, suggestions are given in what way should the Turkish Income Tax System will be arranged for the purpose of reducing unregistered employment.Keywords: Informal Employment, Informal Economy, Income Tax, Turkish Income Tax System