The Effect of Inflation Accounting on Tax Burden
Chapter from the book:
Yücel,
R.
&
Ayyıldız,
Y.
(eds.)
2024.
Accounting in the Digital Age: Studies on Digitalization, Inflation, and Sustainability.
Synopsis
Inflation increases nominal incomes, causing taxpayers to move into higher tax brackets or face a greater tax burden. This effect is particularly pronounced in financial statements prepared based on historical cost principles, where inflation can artificially inflate profitability. This, in turn, weakens the progressive structure of the tax system.
This study examines the impact of inflation accounting on the tax burden. The topic of "the impact of inflation accounting on taxation" is analyzed from various dimensions, highlighting how inflation accounting makes companies' financial statements and performance more realistic. Examples have been provided to illustrate taxation as the focal point in this context.
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Copyright (c) 2024 Rahmi Yücel, Yaşar Ayyıldız; Bülent Ordu, Kayhan Ahmetoğulları, Melike Güneş, Anıl Eralp, Fatih Eroğlu, Rahmi Yücel, Hayreddin Özden, Ayşe Ökdem, Cihat Şiar Akçakale, Zeynep Türk Mühürcüoğlu, Onur Özevin, Hülya Er, Burcu Şimşek