Evaluation of the relations between the principles of optimal taxation and reactions against taxes

In order to actualize the expected objectives of a taxation system, taxation system is required to be designed by taking the taxation principles into account. The proper functionality of the optimal taxation principles is possible with maintaining voluntary accordance with tax and not showing (negative) response to taxes. This study aims to examine the relationship between the optimal taxation principles and the reactions shown against taxes by tax-payers. Firstly, these two subjects are discussed separately, then, they are evaluated within the framework of theory and applications. This study is also supported by the application examples that migt help to form a relationship between the past and the present-day. The results of this study displayed that the optimal taxation principles do not work properly in Turkish taxation system. As a result of that, it is concluded that there is no decrease in the reactions shown against the taxes, especially in tax avoidance and in tax evasion, contrarily, there is an increasing trend. Additionally, suggestions are made to strengthen the relationship, to fully integrate the optimal taxation principles into the system and to decrease the reactions shown against taxes. Keywords: Optimal Taxation, Passive Reactions Against Tax, Active Reactions Against Tax, Tax Avoidance, Tax Evasion, Tax Revolts.