Examination and accounting of tax advantages in terms of individuals and institutions

The increase in population particularly in the developing countries has been prompting to fuel the demand for the public expenditures. In the face of such a situation in which it is rendered difficult to meet the public expenditures through the public revenues; it becomes inevitable on the part of the public administration to adopt measures in increasing public revenues and decreasing the unproductive public expenditures. Due to the fact that the tax revenues known to be the basic source of income within the framework of the public revenues have no broader base; it becomes apparent that the tax ratios are increased or new taxes are levied in order to increase tax revenues. Both increasing tax ratios and imposition of the new taxes are not welcome by tax payers and it might prompt the tax payers to tax evasion as well as tax dodging. Arrangements introduced through the tax legislation have brought forward not only a number of obligations but some of the advantages as well. In case the tax payers are cognizant of these advantages and actually make use of them it becomes possible for them to reduce their tax burden. The aim of this present study is to prevent the tax payers from being exposed to tax fines due to the possible misinterpretations and applications through making the tax legislations better known by the tax payers and handle the advantages granted to the tax payers by the relevant laws together with the accounting records. In the study the tax advantages have been examined discretely within the context and scope of the tax exceptions, tax exemptions, tax rebates, tax tables and tax ratios. Accordingly; it has been concluded that the tax advantages should be rendered understandable and applicable to both the public administration and the tax payers and that this would provide advantages to both the tax payers and the state in order to render the increasing tax ratios not an unwelcome situation on the part of the tax payers, decrease the unrecorded economy and boost the tax collecting capability of the state as well as diversify the taxes in a bid to increase the tax revenues.