Edited By Rasim Yilmaz, Günther Löschnigg, Hasan Arslan and Mehmet Ali Icbay
Impact of Tax Burden and Tax Responsibility on Assignment of Obligations
The state implements legislative arrangements for the purpose of securing public receivables based on sovereignty. Meanwhile, public debtor taxpayers resort to precautions that will protect the continuity of their business and the power of their capital. For that reason, the taxpayers’ desire to plan and control their liabilities arising out of public debts, like they do with their financial activities. Tax liabilities and tax burden influence the type of business taxpayers decide to carry out. This is because the liabilities arising out of taxation start with the assignment of obligations and are reflected on their solvency throughout their business life.
This study is a description of the obligations in terms of the taxation law and tax obligations of legal representatives in limited and joint stock companies. Although they appear to be similar in that they are capital companies, they are subject to different legislative regulations in terms of tax liabilities. In terms of the taxpayer who wishes to engage in commercial activities, the effect of the difference in tax burden on this decision when deciding whether to form a private enterprise company or a capital company is demonstrated with a practical example. Thus, the aspects, which help the taxpayers in making a tax plan regarding tax obligations and tax burden, are included.
In this study, calculations on tax burden have been carried out on the basis of the tax brackets for the 2014 income tax year. It is observed that...