Effect of Tax Administration Reform and Audits on Tax Evasion in Turkey

Nagac Kadir ()
Additional contact information
Nagac Kadir: Department of Economics, Zirve Universtiy, Gaziantep/Turkey

Review of Middle East Economics and Finance, 2013, vol. 8, issue 3, 1-23

Abstract: In recent years, many developing countries have carried out reforms in their tax administration to increase their effciency in collecting taxes. In 2005, the tax authority in Turkey established Tax Offce Directorates (TODs) in 29 provinces for the purpose of controlling the underground economy, improving taxpayer assistance, and increasing auditing effciency. By using the panel data on province-level tax returns, my analysis answers two questions. First, I examine the effect of audits on reported income and reported tax liability. By controlling for the detectability of evasion and other socioeconomic variables, I find that audits have the same effectiveness in increasing reported income and reported tax liability. Second, I investigate the effect of establishing TODs in 29 provinces on compliance in those provinces. I find that establishing TODs had no significant effect on the compliance level of existing taxpayers while it increased the number of tax returns significantly.

Keywords: Tax Evasion; Tax Administration Reform; Audit (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/rmeef-2012-0046 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:rmeecf:v:8:y:2013:i:3:p:1-23:n:4

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/rmeef/html

DOI: 10.1515/rmeef-2012-0046

Access Statistics for this article

Review of Middle East Economics and Finance is currently edited by Ghassan Dibeh

More articles in Review of Middle East Economics and Finance from De Gruyter
Bibliographic data for series maintained by Peter Golla ().