Tax Amnesties: Theory, Trends, and Some Alternatives

July 29, 2008

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Eric Le Borgne, and Katherine Baer. Tax Amnesties: Theory, Trends, and Some Alternatives, (USA: International Monetary Fund, 2008) accessed December 21, 2024

Summary

Tax 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.

Subject: Revenue administration, Social security contributions, Tax administration core functions, Tax collection, Tax evasion, Tax return filing compliance, Taxes

Keywords: Amnesty, Asia and Pacific, Delinquent taxpayer, ISI, Settlement amount, SI, Social security contributions, Tax administration core functions, Tax amnesty, Tax amnesty program, Tax arrears, Tax collection, Tax evader, Tax evasion, Tax return filing compliance, Tax-evasion benefit, Tax-evasion decision, Tax-evasion possibility, Taxpayer, Taxpayer anonymity, Taxpayer register

Publication Details

Pages:

79
Volume:

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DOI:

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Issue:

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Series:

IMF Special Issues
Stock No:

ISIEA2008002
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Supplemental Resources

Link to Abstract
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