Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250224 
Year of Publication: 
2019
Citation: 
[Journal:] Istanbul Business Research (IBR) [ISSN:] 2630-5488 [Volume:] 48 [Issue:] 1 [Publisher:] Istanbul University Press [Place:] Istanbul [Year:] 2019 [Pages:] 113-143
Publisher: 
Istanbul University Press, Istanbul
Abstract: 
This paper attempts to first evaluate the effects of underground economy on the sustainability of tax receipts, and then to search new approaches in tax policy. Underground economy reduces predictability in economic policy, decreases tax receipts, and encourages illegal activities. In Turkey, shifting taxation on indirect and labor-income taxes has created tax corridors (or tax traps), which makes the sustainability of tax receipts even more difficult. As a result, as put forward in this paper, underground economy in developed countries is lower than in developing countries. National trust in indirect taxes, which decrease the underground economy, is no longer accepted, and tax audiences in Turkey provide additional tax receipts for budgets. In Turkey, receipts from taxes on consumption have recently reached an upper limit, and this has created tax corridors, and thus tax policies have lost their elasticity. To maintain fiscal discipline, productivity of public expenditures should be increased, and the problems associated with underground economy should be tackled.
Subjects: 
İç denetim
Hile denetimi
Sürekli denetim
Bankacılık
JEL: 
C89
G21
M42
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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