Evaluation of the effective repentance application in the form of penalty reduction in the offence of tax evasion within the framework of constitutional principles

The state relies heavily on tax revenues to finance public services. However, the lack of a voluntary basis for tax payments can lead some individuals to resist their tax obligations, resulting in negative outcomes such as tax evasion. This not only causes significant losses in state tax revenues but also threatens the sustainability of public services. Therefore, it is crucial for the state to implement effective measures to prevent tax evasion and minimize tax losses. Nevertheless, these measures can sometimes undermine tax justice and compromise legal certainty. Law No. 7394 serves as an important example in this context, introducing significant amendments to the penal regulations concerning tax evasion crimes. This study employs a literature review method to analyze the penalty reduction and effective remorse provisions for tax evasion crimes from the perspective of constitutional taxation principles. Significant amendments have been made to Article 359 of the Tax Procedure Law with Law No. 7394. These amendments have increased the upper limits of penalties for tax evasion crimes, and the repeated crime provisions from the Turkish Penal Code have been incorporated into the Tax Procedure Law. Additionally, the effective remorse provision introduces varying reductions in prison sentences during the investigation, prosecution, and execution stages of tax evasion cases. The aim of this study is to evaluate the effective remorse provision in light of constitutional principles such as equality, justice, clarity, and legal certainty. The study examines the alignment of this regulation with constitutional principles and proposes solutions to address the issues identified.