The concept of related parties in corporate tax

The foremost reason why it is significantly important to examine the concept of related parties in terms of corporate tax, it is because tax losses/tax evasion matter is one of the major issues both in Turkey and various countries. In this respect, this study aims to examine the concept of related parties within the corporate tax subject in detail. In this study, the concept of "related parties" is addressed in detail regarding the concerns of Turkish Law and tax security. The transactions between the related parties and their results are included in the tax-related transactions. About the findings of the study, measuring the financial losses caused by the transactions between the related parties, which is severe pressure on the tax revenues of the countries, is as difficult as preventing them. When the reasons behind are analysed considering the transactions between taxpayers and the related parties, typically it is seen that the common purpose is to reduce tax charges. Furthermore, while there may be administrative purposes, the common purpose is largely to avoid the tax burden. The taxpayers those are seeking to avoid the tax burden, attempt to reduce tax bases by performing transactions with related parties and bodies they are associated with. As a result of such transactions carried out with different methods, their tax burden is reduced and they pay less tax accordingly. However, for the administration, it is seen that it is actually difficult to monitor and/or identify such transactions performed by taxpayers. By adopting international regulations to the Turkish Law, tax security measures have been tried to be established within the framework of legislation and thresholds have been identified accordingly. Certainly, some unclear provisions are included in the determination of the related thresholds and there have been reservations in implementation as well. To address such reservations, some communiqués have been issued to better assimilate and understand the practice, but it is still not fully sufficient. Consequently, the transactions between the related parties and the tax-related issues it has created have often been the subject of discussion for many years. In my study, the definitions of related parties in the Corporate Tax Law extent will be discussed in broad terms and the transactions between related parties will be included as well. Keywords: Related Parties, Tax Loss, Corporate Tax, Turkey