Investigation of corporate tax planning effectiveness; An application in the Turkish banking sector

The objective of this study is to estimate the tax planning analysis in the Turkish banking industry using an econometric model that was created by calculating both the Cash Effective Tax Rate and the Effective Tax Rate under Generally Accepted Accounting Principles. In other words, in the study, it is aimed to reveal whether there is a significant relationship between the tax planning of banks in the Turkish banking sector and which factors are effective in the banking sector. It aims to expose the elements that Turkish banking uses to effectively prepare its taxes. The financial data of 16 banks with public, private, and foreign capital functioning in the banking sector between 2015 and 2020 were used in a logistic regression analysis for this aim, which used two different tax planning models. Because when the dependent variable has two levels, logistic regression technique is performed. The results show that there is a substantial correlation between tax planning in 16 banks and interest income, branch count, interest income, cash payment, sector account, and leverage data, according to the Cash Effective Tax Rate tax planning. It has been found that there is a considerable correlation between interest income, the number of employees, bank profitability, tax provision, pre-tax income, and sector share information and tax planning, as per Generally Accepted Accounting Principles Effective Tax Rate.