An Evaluation of the Use of Digital Trace in Tax Audits and Data Privacy in Turkiye

A digital trace is the sum of behavior, transaction, and access data left by an individual or organization in digital systems. With digitalization, these traces have become central to tax authorities' audit tools. Digital trace-based tax audits offer a more analytical, comprehensive, and data-driven approach compared to traditional audit methods. Applications such as electronic records, electronic invoices, and electronic ledgers provide significant advantages in terms of efficiency, accuracy, and speed in audit processes. However, this situation raises new legal debates regarding the protection of personal data, privacy, and the right to confidentiality. The purpose of this study is to evaluate the use of digital traces in tax audits in Turkey in terms of data privacy. The study approaches the use of digital traces in tax audits from two angles: on the one hand, it explains the legal framework of the audit, and on the other hand, it examines the limits regarding the protection of data privacy. As a result, it has been revealed that for digital auditing to be successful, a balance must be struck between protecting legal limits and protecting privacy.