Tax Amnesties: Theory, Trends, and Some AlternativesTax amnesties remain as popular as ever as a tool for raising revenue and increasing tax compliance. International experience, however, shows that the costs of tax amnesty programs often exceed the programs’ benefits. This paper weighs the advantages and disadvantages of tax amnesties, drawing on results from the theoretical literature, econometric evidence, and selected country and U.S. state case studies. The authors conclude that “successful” tax amnesties are the exception rather than the norm. Improvements in tax administration are the essential ingredient in addressing the main problems that tax amnesties seek to address. Indeed, the most successful amnesty programs rely on improving the tax administration’s enforcement capacity. ?Given the potential drawbacks of tax amnesties, a few alternative measures are discussed. |
Contents
Boxes | 1 |
Definition and Types of Amnesties | 5 |
Economic Analysis | 11 |
Figures | 21 |
Tax Revenue Collection 17 | 37 |
Tax Revenue Collection from Selected | 46 |
Alternatives to Amnesties | 48 |
Conclusions | 55 |
| 68 | |
Other editions - View all
Tax Amnesties: Theory, Trends, and Some Alternatives Katherine Baer,Eric Le Borgne Snippet view - 2008 |
Tax Amnesties: Theory, Trends, and Some Alternatives Eric Le Borgne,Katherine Baer No preview available - 2008 |
Common terms and phrases
accounts receivable allowed alternative amount Assessment assets audit authorities bank base benefits capacity capital citizens cost countries criminal debts decline delinquent designed detection difficult discount economic effect eligible encourage enforcement evaders evidence example expected filing forward future given gross revenue identified immediately impact improve incentives income tax increase individual interest introduced investment Irish Italy less limited major measures Michigan million noncompliance obligations offered offshore overall owed paid participate payment installment penalties percent period Philippines potentially powers probability problem raise rates recent reduced reform regime repatriated result returns revenue collection short short-term significant social contribution Source structure studies successful tax administration tax administration’s tax amnesty programs tax arrears tax compliance tax evasion tax liabilities tax revenue taxpayers term types undeclared voluntary disclosure waived weak