The Discreationary Power of the Administration in Determining the Overdue Interest Rate in Turkish Tax Law: an Economical and Legal Analysis

Abstract

Determination of the administrative discretion in a legal norm has an utmost importance in setting the framework of administrative procedural supervision. However, it is not possible to assert that the criteria suggested by the doctrine in order to determine the discretionary power of the administration fulfil this function completely. The criterion suggested in this study determines the administrative discretion basing on the subject and purpose elements of the norm. The suggested criterion has been used in analysing the article 51 of the Code 6183 which determines the overdue interest rate. As a result of this analysis, it has been concluded that the rate determination power used in the decisions of the Council of Ministers is such a power that should be used in the framework of prescribed power. In the final part of the study, by using Fisher Effect, it has been proved that the overdue interest rates which should be determined in virtue of prescribed power have been determined in an unlawful way.