Abstract:

Tax obligations are often used in the avoidance of tax evasion and tax evasion, the creation of contracts, the conduct of lawless transactions and the conduct of illegal transactions. The tax administration and the court can eliminate these situations that will lead to tax losses by the principle of economic approach. As indirectly stipulated in Article 73 of the Constitution and Article 3 of the Direct Tax Procedure Act, the principle of economic approach is an important principle specific to tax law. Those who want to pay less taxes do not take advantage of the vacancies of the tax laws in order to create the event that generates taxes. However, the principle of economic approach, rather than the outer appearance of the event that occurs, is identified by the real situation and the loss of taxes is prevented by descending to the reality of the event. In this regard, the importance of the principle of economic approach, which is an important principle of tax law in terms of increasing tax revenues and ensuring tax justice, has been studied in the study.