Income concealment and its impact on the Economy

The revenues collected from taxes and levies constitute the largest part of the State budget. These revenues are significant as, without them, the State’s financial activities cannot be carried out, nor can the public needs of society be met. More revenue from taxes and levies means more schools, kindergartens, nurseries, hospitals, roads, and more services for the community, drafting effective social and criminal policies to protect individuals and society. For this purpose, it is important not only to determine the level of taxes and levies but also to protect their collection to ensure the necessary services for the benefit of society. One way to protect tax and levy collection is through criminal legislation. Among the criminal offenses provided for this purpose, Article 180 titled “Income Concealment”, which punishes all illegal behaviors that favor tax evasion, is of great importance. Through this paper, we aim to present the direct importance of revenue collection for the economic and social development of a country by initially identifying some of the ways in which the criminal act of income concealment is committed by commercial companies. This paper will also include a brief analysis of criminal legislation protecting tax revenues before moving on to the economic analysis of tax evasion and the difficulties encountered in combating this phenomenon.