Abstract
A strong tax system should be designed in order to meet the public benefit-based objectives of taxation, especially financing of public expenditures. In the Turkish tax system, after the Ottoman Empire, a new structure was tried to be created by making continuous changes. However, after the abolition of the tithe (aşar), a new and modern tax system structure was tried to be reached. In this context, it can be stated that there has been a shift from the traditional tax approach to an understanding targeting the payment capacity. However, even after an important tax reform, the tax system could not be structured to fully grasp the payment capacity and economic structure. Considering its current structure, the Turkish tax system is still largely based on unfair indirect taxes. Furthermore, the direct taxes applied are also mostly collected in the form of withholding tax. Turkey is faced with international tax competition with unbalanced tax structure. On the one hand, it applies to tools such as lowering of direct taxes under competitive conditions; on the other hand, it participates in international tax cooperation efforts. The impact of tax rules on the accounting practices in Turkey has not developed in a healthy way. In this context, it can be considered that accounting and reporting practices remained under the shadow of the tax legislation for a long time. However, when the changing accounting thinking and practice is evaluated, it is seen that accounting practices find a wider environment and progress in a way that serves its purpose. Based on this implications, this study focuses on the following research questions. First, what are the historical and economic factors affecting the current taxation structure? Second, what are the main problems of the Turkish tax system? And finally, how is the interaction of tax rules and accounting practices within its historical development and current structure?
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Notes
- 1.
In article 73 of Turkish Constitution in first and second paragraphs financial and social aims of taxation; generality and equality are stipulated as follow “Everyone shall be liable to pay tax in accordance with his/her financial situation to the cover public expenses. The fair and equable distribution of tax burden is the social aim of the fiscal policy.” Particularly, progressive tax rates in income taxation reflect fair and equal characteristic of taxation.
- 2.
(Business profits (commercial income), Agricultural profits (income), Salaries and wages, Incomes from independent personal services, Incomes from immovable property and rights (rental income), Incomes from capital investment and other incomes and earnings).
- 3.
For more information on the partial imputation system, see (Avi-Yonah et al. 2011).
- 4.
And also importation of certain goods.
- 5.
Fake invoice: Issued invoice without good or service delivery (Tax Procedural Law Art. 359).
- 6.
Journal and inventory book took already place in Commercial Law at that time (Güvemli 2019).
- 7.
There were some additional books to keep according to Transaction Tax Law and Consumption Tax Law (e.g., manufacturing book, sales book, warehouse book) (Güvemli 2019).
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Ayluçtarhan, A. (2023). An Overview of the Turkish Tax Framework and the Relationship with Tax Regulations and Accounting in Historical Perspective. In: Çalıyurt, K.T. (eds) History of Accounting, Management, Business and Economics, Volume I. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-99-3346-4_12
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