The Relationship between Tax Amnesties and Tax Revenues in Türkiye: Empirical Evidence for Broken Window Theory

Fatih Akçay

Article Details

The Relationship between Tax Amnesties and Tax Revenues in Türkiye: Empirical Evidence for Broken Window Theory

Authors:

Fatih Akçay

Publisher:

Ahmet Arif EREN

Main Topics:

Zaman Serileri Analizi | Maliye Çalışmaları (Diğer)

Journal:

Fiscaoeconomia Vol.7 Issue Özel Sayı, pp.641-670

Document Type:

Article

Publication Date:

10/2023

Document Language:

Turkish

Document ID (Org No.):

2001302201

pISSN:

2564-7504

Keywords:

Abstract:

 Tax revenues are the main source of public revenue used by states in the provision of public goods and services. In order to respond to the changing and increasing social needs over time, it is very important to collect tax revenues from continuous and regular sources. Economic, financial, political, social, cultural, psychological and moral values determine the level of tax revenues. Tax, as one of the most important components of the relationship between the individual and the state, also shows the confidence between these two units. Tax amnesties remove the legal sanctions and penalties of all or some of the unpaid taxes. According to the theory of broken windows, the evaluation of tax crimes as petty crimes and not being subject to sanctions, as well as their forgiveness, may lead to the emergence of more serious tax crimes. The results of tax amnesty, which may damage the trust of honest taxpayers to the stateinstitutions, are very important for policymakers. If tax amnesties show the expected benefits and increase revenue in the short and long term, it may be said that the broken windows theory is invalid. This study examines the effect of tax amnesties on tax revenues in Türkiye with cointegration method for the period 1996-2021. Institutional quality, which is an important variable affecting confidence, is included in the model as a control variable. Unlike other studies, revenues from tax amnesties are calculated annually. The analysis findings provide evidence for the validity of the broken windows theory and that tax amnesties generally do not affect tax revenues.

 Tax revenues are the main source of public revenue used by states in the provision of public goods and services. In order to respond to the changing and increasing social needs over time, it is very important to collect tax revenues from continuous and regular sources. Economic, financial, political, social, cultural, psychological and moral values determine the level of tax revenues. Tax, as one of the most important components of the relationship between the individual and the state, also shows the confidence between these two units. Tax amnesties remove the legal sanctions and penalties of all or some of the unpaid taxes. According to the theory of broken windows, the evaluation of tax crimes as petty crimes and not being subject to sanctions, as well as their forgiveness, may lead to the emergence of more serious tax crimes. The results of tax amnesty, which may damage the trust of honest taxpayers to the stateinstitutions, are very important for policymakers. If tax amnesties show the expected benefits and increase revenue in the short and long term, it may be said that the broken windows theory is invalid. This study examines the effect of tax amnesties on tax revenues in Türkiye with cointegration method for the period 1996-2021. Institutional quality, which is an important variable affecting confidence, is included in the model as a control variable. Unlike other studies, revenues from tax amnesties are calculated annually. The analysis findings provide evidence for the validity of the broken windows theory and that tax amnesties generally do not affect tax revenues.

 Tax revenues are the main source of public revenue used by states in the provision of public goods and services. In order to respond to the changing and increasing social needs over time, it is very important to collect tax revenues from continuous and regular sources. Economic, financial, political, social, cultural, psychological and moral values determine the level of tax revenues. Tax, as one of the most important components of the relationship between the individual and the state, also shows the confidence between these two units. Tax amnesties remove the legal sanctions and penalties of all or some of the unpaid taxes. According to the theory of broken windows, the evaluation of tax crimes as petty crimes and not being subject to sanctions, as well as their forgiveness, may lead to the emergence of more serious tax crimes. The results of tax amnesty, which may damage the trust of honest taxpayers to the stateinstitutions, are very important for policymakers. If tax amnesties show the expected benefits and increase revenue in the short and long term, it may be said that the broken windows theory is invalid. This study examines the effect of tax amnesties on tax revenues in Türkiye with cointegration method for the period 1996-2021. Institutional quality, which is an important variable affecting confidence, is included in the model as a control variable. Unlike other studies, revenues from tax amnesties are calculated annually. The analysis findings provide evidence for the validity of the broken windows theory and that tax amnesties generally do not affect tax revenues.

 Vergi gelirleri devletlerin kamusal mal ve hizmet sunumunda kullandıkları ana gelir kaynağıdır. Zaman içerisinde değişen ve gittikçe artan toplumsal ihtiyaçlara karşılık verebilmek için vergi gelirlerinin sürekli ve düzenli kaynaklardan elde edilmesi oldukça önemlidir. Ekonomik, mali, siyasi, sosyal, kültürel, psikolojik, ahlaki değerler vergi gelirlerinin düzeyini belirlemektedir. Birey ve devlet ilişkisinin en önemli bileşenlerinden olan vergi, bu iki birim arasındaki güven ilişkisini de göstermektedir. Vergi afları, ödenmemiş olan vergilerin tamamının veya bir kısmının hukuki ve cezai yaptırımlarını ortadan kaldırmaktadır. Kırık camlar kuramına göre, vergi suçlarının küçük suç olarak değerlendirilmesi ve yaptırıma tabi olmaması, ayrıca affedilmesi, daha büyük vergi suçlarının doğmasına neden olabilmektedir. Özellikle dürüst mükelleflerin devletekurumlara güven duygusunu zedeleyebilecek bu uygulamanın sonuçları politika yapıcılar açısından çok önemlidir. Vergi aflarının beklenilen faydaları göstermesi, kısa ve uzun dönemde gelir artışını sağlaması durumunda kırık camlar kuramının geçersiz olduğu söylenebilir. Bu çalışma, Türkiyede çıkarılan vergi af kanunlarının vergi gelirlerine olan etkisini 1996-2021 dönemi için eşbütünleşme yöntemi ile analiz etmektedir. Güven duygusunu etkileyen önemli bir değişken olan kurumsal kalite, kontrol değişkeni olarak modele dahil edilmiştir. Diğer çalışmalardan farklı olarak vergi aflarından elde edilen gelirler yıllık olarak hesaplanmıştır. Analiz bulguları, genel olarak vergi aflarının vergi gelirlerini etkilemediğine ve kırık camlar kuramının geçerliliğine yönelik kanıtlar sunmaktadır.

Article Details

The Relationship between Tax Amnesties and Tax Revenues in Türkiye: Empirical Evidence for Broken Window Theory

Authors:

Fatih Akçay

Publisher:

Ahmet Arif EREN

Main Topics:

Zaman Serileri Analizi | Maliye Çalışmaları (Diğer)

Journal:

Fiscaoeconomia Vol.7 Issue Özel Sayı, pp.641-670

Document Type:

Article

Publication Date:

10/2023

Document Language:

Turkish

Document ID (Org No.):

2001302201

pISSN:

2564-7504

Tax amnesty

Tax revenue

Tax compliance

Time series analysisVergi affı

Vergi geliri

Vergi uyumu

Issues

Article Details

The Relationship between Tax Amnesties and Tax Revenues in Türkiye: Empirical Evidence for Broken Window Theory

Authors: Fatih Akçay

Publisher: Ahmet Arif EREN

Main Topics: Zaman Serileri Analizi | Maliye Çalışmaları (Diğer)

Journal: Fiscaoeconomia Vol.7 Issue Özel Sayı, pp.641-670

Document Type: Article

Publication Date: 10/2023

Document Language: Turkish

Document ID (Org No.): 2001302201

pISSN: 2564-7504

Tax amnesty

Tax revenue

Tax compliance

Time series analysisVergi affı

Vergi geliri

Vergi uyumu

Issues

Authors:

Fatih Akçay

Publisher:

Ahmet Arif EREN

Main Topics:

Zaman Serileri Analizi | Maliye Çalışmaları (Diğer)

Journal:

Fiscaoeconomia Vol.7 Issue Özel Sayı, pp.641-670

Document Type:

Article

Publication Date:

10/2023

Document Language:

Turkish

Document ID (Org No.):

2001302201

pISSN:

2564-7504