A Comparative study between Turkish tax laws and international accounting standards: effect of deferred tax on profit

Aybirdi, Eren
This thesis has been written to explain and emphasize the differences between the Turkish Tax Laws and International Accounting Standards which cause the phenomenon called deferred tax. The purpose of the research is to identify individual reasons particularly influential in creating deferred tax through a thorough literature examination, then later using a sample drawn from Borsa Istanbul Sustainability Index to observe whether or not these differences have any tangible effect in the Turkish context. Total tax expense of an entity which is calculated in accordance with financial accounting standards is composed of two separate components; (i) current tax, (ii) deferred tax. Deferred tax is either a liability or an asset on the subjected entity’s part which affects the total tax expense positively or negatively also which subsequently affect net profit. The research attempts to identify most prominent causes of deferred tax, observes the effect of it and also attempts to offer insight on the two contradicting approaches, i.e. lawmakers’ and accounting standard boards’ and tries to give an idea of the extent of the contradiction in Turkey on a fundamental level. The findings show that deferred tax has an impact on financial profit and is a significant part of total tax expense.


The Effects of tax amnesties on tax revenues and shadow economy in Turkey
Kara, Hüseyin; Derin Güre, Pınar; Department of Economics (2014)
This thesis analyzes tax revenue and shadow economy implications of tax amnesties in Turkey after 1985. Cross-examination of amnesty effects was carried out through Ordinary Least Squares regression and Error Correction Model. In addition to amnesty years, pre and post effects of amnesties on revenue and shadow economy are analyzed. Results indicate that none of the amnesties necessarily display an escalating behavior for tax revenue except for 1988 amnesty. 1988 amnesty is found to increase tax revenue bot...
A Tax reform proposal for Turkey: flat tax system /
Özgün, Burcu; Derin Güre, Pınar; Department of Economics (2014)
This study compares the macroeconomic and welfare e ffects of a fundemantal tax reform, that is fl at tax system for the Turkish case by using a dynamic life-cycle simulation model. Flat tax system removes all current tax rates and taxes all sources of income at the same rate by expensing the investments at the year they are made. The model projects signi ficant increase in output by shifting from the current graduated tax system to the flat tax; as well as an increase in welfare.
Simulating Turkish tax system
İleri, Adem; Derin Güre, Pınar; Department of Economics (2012)
Tax systems are used for economic and social concerns such as promoting the economic growth or decreasing the income inequality and tax evasion, increasing the social welfare, etc. Researchers argue that the consumption taxes are quite high in Turkey compared to other OECD countries. Therefore, the proposed tax reform in this study is to decrease the Value Added Tax (VAT) rate and to increase the top statutory income tax rate. This thesis constructs and presents first set of a 55-period overlapping generati...
A Measure of the Shadow Economy in a Small Economy: Evidence from Household-Level Expenditure Patterns
Ekici, Tufan; Besim, Mustafa (2016-03-01)
In this paper we measure the size of the shadow economy in North Cyprus by using micro-econometric approaches and then calculate its implications on national accounts and fiscal balances. There is a relatively new strand of literature that focuses on comparing income-expenditure patterns of households to calculate the degree of underreporting of income levels by self-employed and privately employed individuals, as compared with public servants. We use the 2008 Household Budget Survey of North Cyprus and ana...
The determinants of portfolio investments to Turkey : from 1989 to 2008
Günayer, Elif; Küçükkaya, Halit Engin; Department of Business Administration (2009)
This thesis analyzes the factors that determine the portfolio investments to Turkey in the period from 1989:04 to 2008:12. The factors that are examined are budget balance, current account balance, nominal exchange rate between the Turkish Lira and the US dollar, Turkish domestic interest rate, US 3-months Treasury Bill rate, annual inflation rate in Turkey and ISE 100 Index. A Vector Autoregressive Model is used for the purpose of examining the impacts of these variables on the level of portfolio investmen...
Citation Formats
E. Aybirdi, “A Comparative study between Turkish tax laws and international accounting standards: effect of deferred tax on profit,” M.S. - Master of Science, Middle East Technical University, 2016.