TAX EXPENDITURE ASPECT OF UNIVERSITY EDUCATION: THE MODEL OF TURKEY


TOSUN A. N.

11th Annual Conference of the EuroMed-Academy-of-Business - Research Advancements in National and Global Business Theory and Practice, Valletta, Malta, 12 - 14 September 2018, pp.1286-1294 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume:
  • City: Valletta
  • Country: Malta
  • Page Numbers: pp.1286-1294

Abstract

Not all of the tax immunities and exemptions granted to universities are considered as tax expenditures and are not included in tax expenditure calculations. However, these calculations may differ from country to country and are not certain. In this study, an analysis of tax immunities and exemptions granted to the universities in Turkey has been made under the concept of tax expenditures. It has addressed which tax immunities and exemptions granted to the universities are regarded as tax expenditures and which are not and which taxes are to be paid by the universities. As a result of this study some controversial issues in the calculation of tax expenditures in the area of university education in Turkey have been identified. For example, non-profit foundation universities education is not free as government universities education. These universities have a very high income. However, they are not payers of corporate tax. As another example, people who give donations to the universities can deduct from their income the full donation to diminish their tax. Should this situation be seen and calculated as a tax expenditure or not? Both controversial examples have not been calculated as tax expenditure in Turkey but mentioned in the 2016 tax expenditure report of Turkey. In this study the suitability of existing practices has been discussed.