Abstract:

Globalization is a reflection of the public finance area, it is defended that the dual income tax system is both growth-friendly and provides simplicity and efficiency in taxation. Although theoretically consistent in this system where its first practices were seen by the Scandinavian countries, it has caused some problems and discussions in the practice. Criticisms on justice and income shift, especially in taxation, are the weaknesses of the system. In the study, taking into account the above circumstances, we will examine in detail what the system’s advantages and disadvantages are. In this context, the theoretical structure of the bilateral income tax system will be presented in a broad scope, depending on the historical and corporate reasons. Then we will examine the different policies of the countries implementing the bilateral income tax system. Finally, it is discussed what the achievements and losses of Turkey’s approach to the relevant system or its implementation will be and how it can follow a policy at the point of criticism brought to the system.

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