The role of tax inspection in the prevention sahdow economy in the Turkey

The shadow economy which has many problems in itself causes difficulties in terms of both its definition and importance and determination of the precaution to take. With its increasing place, today shadow economy is becoming a serious problem in the world, especially in developing countries. As known, Goverment wishes to finance the publıc services to the citizens via tax revenues that are relatively cheaper than the other resources, Modern tax systems are built upon self-declaration base. The self-declaration base entails some risks by its structure inherently. A well formed tax administration, efficent and productive tax inspection is a precondition for the tax payers to declare their true income. Otherwise, the outcome would be that the taxpayers would operate in an environment where the hidden economy prevails. Many researchers reveal that the shadow economy about which there are many conferences and conventions and which is mentioned in many scientific documents and thesis has a direct mutual relation with the rate of taxation rate and tax incidence. In the study, firstly the term of the shadow economy is defined and its characteristics and reasons are explained. In the second part of the study, the importance of tax inspection in Turkey is mentioned. In the third part, the role of tax inspection in the prevention shadow economy is emphasized. Keywords: Shadow economy, tax inspection, tax evasion, tax loss