DETECTION, CORRECTION AND ACCOUNTING RECORDS OF INCORRECT TRANSACTIONS FOR LEGALLY UNACCEPTABLE EXPENSES IN TERMS OF TAX LEGISLATION

Abstract

One of the most important concepts that appears the differentiation of accounting profit and taxable profit is expenses which are not legally accepted. In the determination of accounting profit some expense which is not legally accepted as an expense can be deducted and these expenses cannot be deducted in determination of taxable profit Therefore, it is important to correctly apply the expenses that are not legally accepted for the determination of the accounting profit which constitutes the tax base in general. For this reason, the law stated expenses that can be deducted in the 40th article of the Income Tax Law. All the expenses except these that can be discounted are considered as legally deductible expenses. The expenses that cannot be deducted are also counted in article 41 of the same law. These expenses will also be considered as unacceptable expenses without any hesitation. However, when considered from the application point of view, it is seen that there is a doubt in terms of issues such as whether it should be taken into consideration as an unacceptable expense or whether the necessity of being subject to withholding should be considered as a fee. Within this context, the errors encountered in the application in relation to legally unacceptable costs and their adjusted accounting records are included in our study.