Evaluation of institutional efficiency of tax audit system: A modal proposal for Turkey

With the beginning of the tax as being a tool of democracy, paying the right amount of tax has become an important issue. Modern tax systems are based on declaration. An important element of this principle is auditing the correctness of the tax declared and paid by the taxpayer. Tax audit is the investigation of the correctness of the tax that should be paid by the taxpayer, the determination and examination of it. All countries would like to have an effective tax audit system. With an effective tax audit system, main purpose can be achieved. The main purpose of tax audit system is to prevent and deter taxpayers' tax evasion activities. We come across the same problem of measuring whether an efficient system is applied in public services as in the efficiency of tax audit system. Even though to measure the efficiency of tax audit system, some statistics, such as the number of auditors, the results of the audits, might be considered, the elements of surroundings of this statistics should be taken into account. Effectiveness in tax audit is a system issue. In the current situation, it is necessary to make some big changes in tax audit system of Turkey. In the evaluation of the existing system, the audit unit cannot implement its own plan by being crushed under the workload, the system does not have a standard work style, subjected to different applications by each auditor, costly and unforeseen process. With the improvements in technology, tax audit system in Turkey should be changed from an auditor oriented system into a technology oriented system. Auditors should prone to teamwork and become qualified with the usage of technologic tools. The system should be institutional, inexpensive and foreseeable. "One fits for all" approach should be changed with specialization. Audit unit should focus on the sectors which has sheer amount of tax evasion and also on the large taxpayers. In addition, the standard audits are conducted by a different unit.