Finance of political parties in Turkey and analysis of state subsidies to political parties

In our country, a lot of political parties display activity. The law of Political Parties, which was put into action in 1983, regulates those political organizations work procedures and fundamentals. It states the rules related to parties? financial issues besides the rules about their foundation and organization. The law, also, regulates the ways of gaining income and the kinds of expenditures for political parties. Political parties which are considered as non-profit associations need financial account unity, and this situation allows us to follow whether their political activities to be done target-oriented or not. Political parties have got different kinds of incomes. One of them is government aid. Government aids are done in certain proportion of overall budget income estimate by the Treasury. Government aids have been changed a lot within the period from 1965 up to now by the implications of political will. Today one of the most important financial sanctions for political parties is the penalty of depriving them of government aid. This penalty was imposed to AK Parti for the first time. With the imposition of the penalty the ways and the circumstances of it were determined.Political parties plan their budgets, put their income-expenditures on the books, and prepare end-of-period final accounts as a result of being an organization. Tax exemptions for political parties which do not pertain to the law related to non-profit associations are specified within other tax laws. For political parties commercial activities are forbidden by the law and they are not allowed to borrow money from corporate entities. They are exempted from paying tax for being non-profit organization; although some of their activities are in the domain of tax applications, these organizations are eligible for exemption.