The efficiency analysis of tax penalties applied to tax evasion crimes: A field research

The crime of tax evasion, regulated by Article 359 of the Tax Procedure Law, is a type of crime that is frequently encountered in criminal proceedings today. Persons who commit this crime are subject to tax penalties and other criminal sanctions provided for in the Tax Procedure Law. The primary purpose of these penalties is to protect tax revenues, which are the state's most fundamental source of income. However, the most important consideration in the application of these penalties is the extent to which they are effective. In this context, the effectiveness of penalties for tax evasion offences has been analysed in light of the assessments of tax inspectors, lawyers and judges. In the study, the conceptual and theoretical framework of tax evasion and the penalties applied for this crime were first presented; then, qualitative data on the effectiveness of penalties were obtained through semi-structured interviews with experts in the field. Qualitative data obtained from semi-structured interviews with a total of 31 participants representing three separate expert groups were systematically analysed using NVivo 15 analysis software. The analyses revealed that the effectiveness of current penalties is limited and that various shortcomings are encountered in practice. Finally, policy recommendations for the relevant field were developed based on the findings.