Corruption and effects on tax structure

Abstract

Corruption hasn't a new phenomenon, but in recent years It has attracted increasing attention. Corruption which has been defined in many different ways, that is the abuse of public power for private benefit. This is the definition used by the World Bank. Especially in the decade of the 1990s, the fact that corruption has attracted a great deal of attention in developed - developing countries has based on many reasons. Corruption has so a complex structure that it hasn't been explained only one factor. The improved factors that promote for corruption of explaining this complex strucutre can gather two main titles: Direct factors (regulations in law and authorizations, tax structure, spending decisions, provision for goods and services at below market prices etc.) and indirect factors (Quality of the bureaucracy, level of public sector wages, penalty system etc.) Also, corruption includes many economic, financial, social and politics effects. It is showed that corruption level is higher in developing countries than developed countries. In this area, various invetigations on curruption are showed that tax structure is one of factor to be causing corruption. At the same time, it has been indicated that tax revenue are influenced negatively by the level of corruption in taxation. Countries with high level of corruption have lower collection of tax revenue in relation to GDP (given other factors). This paper presents relationship between corruption and tax structure as empirical study for Turkey. In addition, given main measures against corruption have taken place in this paper.