Abstract:

A non-registered economy is simply a concept that describes all economic activities that are not included in the official GDP accounts and occur outside the public authority. The failure to tax out unregistered activities is one of the main problems that each nation faces. Therefore, until today, each government develops certain solutions and methods to prevent unregistered activities. According to Article 73 of the Constitution of the Republic of Turkey, “everyone is obliged to pay taxes according to his financial power in order to meet public spending.” Every government in the world needs a specific funding to make public spending. These sources of funding come at the beginning of compulsory and unrefundable tax revenues. The impact of tax burden on registration output in our study is evaluated through the comparison of Turkey and OECD countries.

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