Cover Tax Amnesties
Tax Amnesties
Theory, Trends, and Some Alternatives
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Abstract

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.

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Author:
Mr. Eric Le Borgne https://isni.org/isni/0000000404811396 International Monetary Fund

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and
Ms. Katherine Baer
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Series:
IMF Special Issues
Publisher:
International Monetary Fund
Language:
English
Publication Date:
29 Jul 2008
DOI:
https://doi.org/10.5089/9781589067363.058
ISBN:
9781589067363
Pages:
79
Keywords:
ISI; SI; taxpayer; tax amnesty; amnesty; tax evader; tax arrears; tax amnesty program; taxpayer anonymity; settlement amount; delinquent taxpayer; Tax administration core functions; Tax evasion; Tax collection; Social security contributions; Tax return filing compliance; Asia and Pacific; tax-evasion benefit; taxpayer register; tax-evasion decision; tax-evasion possibility
Legal-disclaimer:
This publication should not be reported as representing the views or policies of the International Monetary Fund. The views expressed in this work are those of the authors and do not necessarily represent those of the IMF, its Executive Board, or its management.
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