Taxation of construction sector from the point of Turkish tax system

The purpose of this thesis is that; after giving a comprehensive information about the construction sector in Turkey, construction types and making a detailed examination of the methods that are applied on the taxation of the sector; examining the main taxation problems that are faced to, taxation techniques which are apllied by the tax administration according to construction types, tax conflict that are based on the criticisms of which the tax administration put forward against the actors of this sector by taking the similar qualified judgements decisions into cosideration and consequently exposing the solution proposals that can be developed against the common problems of the sector. In our country; construction Works consist of mainly two types: -Private construction Works (constructions which are maintained by the form of "construct/sell" ) -Construction / undertaking and repair Works (constructions that are maintained under the shelter of an undertaking) Profits that are provided by the construction / undertaking and repair Works are considered as "commercial profits". It's necessary for these profits to be taxed according to methods that are suggested in the "Law of Income Tax". If "an institution" obtainsthe profit that is mentioned above; it's considered as "an institution profit" and is going to be taxed according to the methods that are suggested in the Law of ınstitutions Tax. The problems that are met in the taxation techniques which arise in the case of the maintenance of the years of widespread construction/undertaking and repair works more than one fiscal year is the leading matter in this sector and in related problems that take place in the purpose of this thesis. This issue which is described as the years of widespread construction /undertaking and repair works has got a comperehensive and a detailed matter both from the point of accountancy and from the point of taxational dimension. For that reason; it forms the matter of many conflict that are transfered to the law. I tried to exemplify the abovementioned problems by using many conflicts about this matter in my thesis. Private construction work is a part that sector which forms the mostly lost and unlicensed construction from the point of taxational structure. The most important factor in that issue is that; the actors of such construction works are so strangers to the dispositions and they don't need to professional ones who are going to guide them since the tax examinations can not be done enough frequently and efficiently. These actors most of whom are not even taxpayers display attitudes and behaviours that negatively effect in-registered actors who are the taxpayers of sector. Several documents and examples that are related with this matter are the findings which confirm the reality of that issue. These documents and examples take place in our thesis. By taking the formerly lived experiences both in the matter of the years of widespread construction and repair Works and in the matter of private construction Works from the point of taxation technique into consideration; In our opinion, if the tax authority uses a system which is more simple, easily assimilated and which tires the control mechanism less, but increases its efficiency; both sides become happier.