Front Matter Page

IMF LEGAL DEPARTMENT

Front Matter Page

TAX LAW IMF TECHNICAL NOTE

VOLUME 1

01 | 2019

DESIGNING INTEREST AND TAX PENALTY REGIMES

Christophe Waerzeggers Cory Hillier Irving Aw

INTERNATIONAL MONETARY | FUND IMF LEGAL DEPARTMENT

Front Matter Page

January 2019

Waerzeggers, Christophe , Cory Hillier, and Irving Aw, 2019, “Designing Interest and Tax Penalty Regimes”, Tax Law IMF Technical Note 1/2019, IMF Legal Department

This Tax Law Note was prepared by the tax counsels of the IMF’s Legal Department. This Tax Law Note should not be reported as representing the views of the IMF. The views expressed in this Tax Law Note are those of the authors and do not necessarily represent those of the IMF or IMF policy.

Contents

  • I. Overview

  • II. Executive Summary

  • III. Justifications for Tax Interest and Tax Penalties and General Design Considerations

  • IV. Best Practice Design Features for Interest Regime

    • A. Accrual of Interest

    • B. Rate of Interest

    • C. Remission of Interest

    • D. Recovery of Interest

  • V. Best Practice Design Features for Tax Penalty Regime

    • A. Classification of Sanctions

    • B. Adequacy and Effectiveness of Sanctions

    • C. Voluntary Disclosure Programs

  • Appendix A Sample Late Payment Interest Provision

  • Appendix B Sample Administrative Penalties Provisions

Designing Interest and Tax Penalty Regimes
Author: Mr. Christophe J Waerzeggers, Mr. Cory Hillier, and Mr. Irving Aw