Informal Economy and Tax Compliance Cost Workshop – Afyon

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Under the “Technical Assistance for Fight against Informal Economy and Improvement of Administrative Capacity of the Turkish Revenue Administration” (IPA II) Project a workshop about measuring the size of the informal and tax compliance cost in Turkey was held in Afyon in March 2017, with the participation of valuable academicians from Hacettepe University, Ankara University, Afyon Kocatepe University and also experts from PwC Turkey,PwC UK and TEPAV.

    On the first day of the workshop, studies conducted within the scope of the project to measure the size of the informal economy, results of the studies and alternative methods were assessed. The sectors in which the measurement studies to be carried out on a sectoral basis, what type of data is needed and how to determine the methodology has been evaluated.

On the second day of the workshop, the workplace survey designed to measure the cost of tax compliance and the household questionnaire prepared to measure the perception of the informal economy were evaluated within the scope of pilot studies conducted in Ankara. Evaluations were made on the methodology in order to obtain the expected results from the questionnaires.

 Also, a road map was determined within the framework of the studies carried out within the scope of the project, in order to analyze the gaps causing unregistered conditions by observing Turkish Tax Legislation. Firstly, analysis of Turkish tax legislation according to tax types and determination of the causes of informal economy, followed by examples of good practices used in the fight against informal struggle and voluntary compliance in the EU countries and screening of the other countries regarding the gaps in Turkish tax legislation. Finally, a proposal was drafted about applicability of best practice examples to our country and filling in the gaps.

     The workshop, which was welcomed by the participants with great interest, provided an important contribution to the efforts carried out within the scope of the project and to the efforts carried by the Presidency to combat informality and to increase the voluntary compliance of the taxpayers.