The institution of reconcilation in the tax law in Turkey and analysis of its implementation results (2012-2016)

The institution of reconciliation which we can describe as an agreement method where the taxpayer and tax administration agree by making a concession to solve tax disputes has been continued to be implemented in Turkey since 1963. Discussions about the institution of reconciliation and its implementation manner are ongoing. In our study, will be assessed that what needs to be done in order to reduce tax disputes and to increase the effectiveness of the institution. The historical development of tax and basic tax-related concepts are explained to form a basis for the institution of reconciliation. The reconciliation systems of some developed Western countries are examined and it is found out that almost all of the countries examined widely implement reconciliation and similar methods and that the majority of the disputes are resolved through reconciliation and similar administrative methods and that a small number of disputes are submitted to the judiciary. The emergence and historical development of the institution in Turkey, reconciliation before and after assessment are explained in detail and the results of reconciliation before and after assessment between the years 2012 and 2016 are analyzed thoroughly. It is observed that a small portion of the tax disputes in Turkey are solved through reconciliation and a solution for most of the rest could not be found. It is understood that there is not an application obligation for reconciliation before judiciary remedy, there is a time limitation for reconciliation, there are obstacles in applying to reconciliation in terms of tax penalties, reconciliation negotiations are not based on objective criteria, the taxpayer's ability to pay is not taken into consideration and these deficiencies are distinguished as factors which reduce the efficiency of the institution of reconciliation in Turkey.