Abstract:

The phenomenon of corruption, which is a global problem, seriously affects especially underdeveloped and developing countries economically, socially and politically. Corruption occurs when individuals employed by the state in public units engage in transactions such as bribery, embezzlement, fraud, etc. and use public services extravagantly. Moreover, tax evasion, informal economy in taxation and tax legislation, which are indicators of financial corruption, are among the reasons for the existence of corruption. Therefore, in order to prevent and reduce corruption, the state should intervene with the policies it deems necessary. First of all, individuals should be made tax conscious and the necessary legislation should be introduced. If changes need to be made in the system, changes should not be avoided for the development and progress of the country. Otherwise, it will not be possible to reduce the damage caused by fiscal corruption. There are many methods in terms of policy design to prevent fiscal corruption, but this paper discusses how to reduce it by using tax instruments. The paper focuses on how fiscal corruption in Turkey has been addressed through tax instruments and how important steps can be taken to combat fiscal corruption if the proposed policies are implemented. The conclusions are that accountability and transparency should be prioritized for the public, tax audits and tax legislation should be transparent for the society, and goals such as tax morality and tax awareness should be set for taxpayers.

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