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Estimating Value Added Tax Gap in Turkey

Author

Listed:
  • Ebru Canikalp

    (Cukurova University)

  • Ilter Unlukaplan

    (Cukurova University)

  • Muhammed Celik

    (Uludag University)

Abstract

As an important issue in the fiscal structure of a country, tax gap is defined as the difference between tax burden that the taxpayer should face and the amount actually paid. In this study, tax gap was evaluated by the framework of the Value Added Tax. The reason behind this choice, i.e. Value Added Tax Gap (VAT Gap) is to make an effort to evaluate the efficiency of the tax administration, the compliance of the taxpayers and the relationship between policy gap and the compliance gap. With this aim, VAT Gap and the various methods to calculate this gapwere examined. Furthermore, based on the reports by the European Commission, VAT Gap in Turkey for 1993-2014 period were estimated and evaluated by employing thetopdown method.

Suggested Citation

  • Ebru Canikalp & Ilter Unlukaplan & Muhammed Celik, 2016. "Estimating Value Added Tax Gap in Turkey," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 2(3), pages 18-25, August 10.
    • Handle: RePEc:mgs:ijoied:v:2:y:2016:i:3:p:18-25
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    References listed on IDEAS

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    5. Reckon, 2009. "Study to quantify and analyse the VAT gap in the EU-25 Member States," Taxation Studies 0029, Directorate General Taxation and Customs Union, European Commission.
    6. Agha, Ali & Haughton, Jonathan, 1996. "Designing VAT Systems: Some Efficiency Considerations," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 303-308, May.
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    Cited by:

    1. Lukáš Moravec & Jana Hinke & Monika Borsiczká, 2021. "Fiscal Effect of VAT Control Statement - Case Study of the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 69(3), pages 365-377.
    2. P Sivashankar & RMPS Rathnayake & Maneka Jayasinghe & Christine Smith, 2017. "Incidence of value added taxation on inequality: Evidence from Sri Lanka," Discussion Papers in Economics economics:201704, Griffith University, Department of Accounting, Finance and Economics.

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    More about this item

    Keywords

    Compliance Gap; Policy Gap; VAT Gap;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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