Political Economy of Tax Evasion and Tax Loss in the Real Estate Sector

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YILMAZ B. E., Erdoğdu M. M., Aydın M., User İ.

in: Handbook of Research on Public Finance in Europe and the MENA Region, Erdoğdu, M. and Christiansen, B. , Editor, Igı Global Publications, Washington D.C., pp.268-298, 2016

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2016
  • Publisher: Igı Global Publications
  • City: Washington D.C.
  • Page Numbers: pp.268-298
  • Editors: Erdoğdu, M. and Christiansen, B. , Editor
  • Istanbul University Affiliated: Yes


This chapter engages with political economy of tax evasion and tax compliance issues, particularly focusing on deficiencies and problems within property taxation system in Turkey. The chapter questions if there are any political preferences, legal arrangements or cultural issues facilitating tax evasion and tax loss in Turkey. It first identifies the degenerating effects of frequent application of tax amnesties, having a lax tax reconciliation institution, and less than logical way tax information confidentiality principle
is applied in Turkey. Then, the chapter investigates peculiarities and specific difficulties of real estate sector in general in relation to taxation. Finally, a comprehensive property tax reform based on a semipublic valuation system is proposed to reduce tax loss in this sector.