Income related tax reform studies initially began within Turkey in 1943. In the years before 1943, the existing profit tax had completed its function and was unable to satisfactorily accommodate the developing needs of Turkey. For this reason, it was necessary to enact a modern tax system and implement tax reform inclusive of Income Tax Law, Corporate Tax Law, and Tax Procedure Law.

The tax laws mentioned above were dependent upon the basis of a declaration (i.e. taxpayer is filing) and included a large mass of taxpayers. In this respect, it was necessary to reorganize the tax system to prepare for this setting. This reorganization was modeled upon a new Western system. It required members who were informed in the areas of modern inspection techniques, professional development, tax specialization, objectivity, and integrity.

The Tax Inspectors Board was founded on May 29, 1945 to cope with these issues in the enacting of Code 4709, based on the authority of the Council of Ministers. This code was a landmark reform in tax inspection history and caused a major evaluation into previous methods.

This board’s status, duty, and authority were determined not only by Code 4709, but also by “The Decree of Financial Ministry’s Organization and Duties” (Number 178, 12-12-1983), “The Decree Having Force of Law” (Number 207), and “The Regulations of the Tax Inspectors Board” (published in the official news journal on 08-07-1970).