The Impact of Corruption on Tax Revenue

Abstract

In today's interconnected world, corruption is on the rise, bringing about harmful consequences such as the widespread evasion of taxes, irregular exemptions, and a weakened tax administration. These issues collectively contribute to a decline in tax revenues, affecting both developed and underdeveloped nations. Corruption takes various forms, but corruption involving public employees is particularly destructive, as it not only results in a loss of tax revenue but also gives rise to other social problems. This research aims to investigate the relationship between different types of taxes and corruption, aiming to determine which taxes are more vulnerable to corrupt practices. To achieve this, the study presents a conceptual framework and explores the causes and effects of corruption before conducting a regression analysis to assess its impact on tax revenues in Türkiye.