Tax audit in Turkey and international comparative analysis

Tax revenues are the most important source of financing for states, and the effective collection of taxes is of great importance. Taxes are economic values collected from individuals and institutions based on a compulsory and legal framework. Today's tax systems largely rely on the declaration basis, with taxpayers playing an active role in this system. Tax audits are conducted to investigate whether taxpayers comply with tax laws, prevent tax losses and evasion. Tax audits are crucial for ensuring tax justice and increasing public revenues. The effectiveness of tax audit activities depends on various factors, including organizational structure, personnel qualifications, technological infrastructure, and audit methods and strategies of the tax administration. The accuracy of information provided in taxpayers' declarations is a critical factor for the success of the declaration basis. Due to the inherent risks associated with the declaration basis, tax audits should be implemented effectively to verify the accuracy of taxpayers' declarations. Tax audits are an integral part of tax systems where the declaration basis is prevalent. Tax audits have a significant impact on taxpayers' attitudes and behaviors, contributing to the development of tax awareness and increasing voluntary compliance. This study defines the concept of audit and tax audit, discusses their scope, objectives, types, and principles. The historical development, legislation, institutional structure, and practice of tax audit in Turkey are explained. Additionally, the general characteristics, institutional structures, and practices of tax audit systems in Germany, the United States of America, the United Kingdom, and the Russian Federation are comparatively examined. Recommendations and conclusions present the strengths and weaknesses of Turkey's tax audit system and provide suggestions for improvement, supported by examples from selected countries