Effect of E-Ledger Application on Taxable Income: Example of Malatya Apricot Businesses

Abstract

E-ledger system is a system that allows paper books to be kept in electronic form. This system, carried out by the Revenue Administration in Turkey, allows businesses to create, record and store their books digitally, in accordance with the provisions of the Tax Procedure Law and the Turkish Commercial Code. In the study, the effect of the e-ledger system, which was implemented in Turkey with the "Electronic Ledger General Communiqué" dated 13 December 2011, on taxable income of businesses trading apricots in Malatya was examined. Türkiye ranks first in apricot production in the world. In 2017, Malatya Sulfur Dried Apricot was registered and declared as "Malatya Apricot" by the European Union Commission with its unique qualities and structure. This situation has given Malatya Apricot a distinct advantage over its competitors in both domestic and international markets. Thanks to this superiority, apricot trade in Malatya has gained significant momentum, especially exports have become a major source of income. The research was carried out on the 5 companies with the highest volume exports in Malatya province. Businesses are required to be e-ledger users. The data on the 5-year income statement items of the businesses before switching to e-ledger and the data on the income statement items until today after switching to e-ledger were taken. In the research, the innovations brought by the e-ledger application to the public and businesses in terms of taxation were investigated. Income statements of 5 apricot businesses operating in Malatya before and after switching to e-ledger were analyzed. As a result of the research, it was determined that there was no regular increase in the taxable income of businesses after the transition to e-ledger. It has been observed that the e-ledger does not increase public tax revenues at the expected level.