Economic and judicial efficiency in tax audit in Turkey

The timely and complete acquisition of tax revenues, which is the most important source of funding in the present day, is predominantly the concept of tax audit. Tax abatement and minimization of fugitives and the ability of the state to obtain the tax revenues required can be achieved through effective tax auditing. In addition, effective tax supervision can increase the confidence of the society to the state by ensuring the implementation of justice and equality principles in taxation. The purpose of this study is to evaluate and analyze the economic and judicial efficiency of the tax audit. In this context, the tax audit rate for 1984-2015 period was investigated empirically in relation to tax revenues in order to analyze economic efficiency. The hypothesis established to carry out the purpose set in the study was first theoretically evaluated and then investigated using Time Series Analysis using unit root test, cointegration test, short and long term model estimates. As a result of the ARDL cointegration analysis, it was concluded that there was a long-term cointegration relationship between tax audit and tax revenues. Short-term and long-term models based on cointegration relations have been estimated. According to the results obtained in the study;  According to the results of ARDL short-run model, the hypothesis that "the increase in tax audit rates is increasing tax revenues" is confirmed.  According to the ARDL long-run model results, the hypothesis "the increase in tax audit rates is increasing tax revenues" can not be confirmed. According to the findings obtained by empirical analysis, the finding that "the increase in tax inspection rates increased tax revenues in the short term, but decreased it in the long run". When policy makers aim to increase tax revenues, it may be preferable to increase tax audits in the short term. In the long run, the effect of this increase on tax revenues will be negative. A semi-structured interview was conducted with 26 field experts in order to evaluate judicial efficiency in tax audit and the results were analyzed using qualitative data analysis method and NVivo package program. Within the framework of expert opinions, problems related to judicial efficiency and suggestions for solution were presented in tax audit. Keywords: Tax Audit, Time Series Analysis, ARDL Bound Test, Qualitative Data Analysis, NVivo