EXAMINATION OF RISK ANALYSIS APPLICATION IN TAX AUDITING IN TURKEY

The tax audit is the process of determining whether taxpayers comply with tax legislation. The aim of tax auditing is to identify tax evasion and loss, and to prevent the decrease in tax revenues. For an effective tax audit, it is important to make the correct selection of taxpayers to be examined. Since it is not possible to examine all taxpayers, risk analysis is used in tax audits. Risk analysis is a method that helps in selecting the correct taxpayer for examination. Therefore, the risk analysis method is applied in tax audits both worldwide and in Turkey. Risk analysis is applied in tax audits in many countries. In Turkey, risk analysis in tax audits is conducted by three institutions: the Ministry of Treasury and Finance, the Tax Inspection Board, and the Revenue Administration. In this context, the risk analysis practices in Turkey have been compared with those of selected countries, and shortcomings such as the lack of application uniformity and legislation regarding risk analysis in Turkey have been identified, with solutions and recommendations for necessary improvements.