Alternative solutions in resolution of tax disputes: Applicability in Turkey

The tax that the state collects from real and legal persons in proportion to their ability to pay, as an indicator of its sovereign power, is the main financing tool of public expenditures. Since tax is a cost element, taxpayers want to pay as little tax as possible, while the government wants to increase tax revenue as much as possible. Tax disputes arise from these behavioral differences, the inability of taxpayers to penetrate the tax laws sufficiently, and the incomplete or incorrect fulfillment of their tax duties. There are basically two ways to resolve tax disputes. While the first of these ways is administrative (peaceful) solutions, the other way is judicial solutions. Recently, it has been observed that alternative solutions have been used in addition to traditional solutions. Alternative solutions for the resolution of tax disputes enable the quick resolution of the dispute by bringing together the parties of the dispute, the taxpayer, and the tax administration, in the presence of an impartial and independent third person/institution. Alternative solutions find a wide application area in private law, but they cannot find this area in tax law. However, considering the advantages it provides in the resolution of tax disputes, the increase in the use of alternative solutions will be in favor of both the taxpayer and the administration. In this context, it is primarily aimed to evaluate the traditional solutions in the resolution of tax disputes and to identify the problems in practice. In the second part, alternative solutions were defined and the practice in Turkey was evaluated based on the sample country practices. The aim of the study is to evaluate the applicability of alternative solutions in the resolution of tax disputes in Turkey. In the evaluation, it has been determined that alternative solutions are used in a limited way in the resolution of tax disputes in Turkey, and this is because there is no comprehensive legislation on the use of alternative solutions in Turkey. Keywords: Tax, Tax disputes, Alternative Solutions, Applicability of Alternative Solutions in Turkey