An Economic Analysis of Tax Amnesties [electronic resource]
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TextSeries: IMF Working Papers; Working Paper ; No. 89/42Publication details: Washington, D.C. : International Monetary Fund, 1989Description: 1 online resource (40 p.)ISBN: 1451975473 :ISSN: 1018-5941Subject(s): Tax Amnesties | Tax Collection | Tax Compliance | Tax Enforcement | Tax Evasion | Argentina | Belgium | Colombia | Mexico | United StatesAdditional physical formats: Print Version:: An Economic Analysis of Tax AmnestiesOnline resources: IMF e-Library | IMF Book Store Abstract: Tax amnesties have frequently been justified as politically popular ways to generate increases in government revenue. This paper examines the circumstances under which amnesties are likely to have a beneficial impact on revenue collections. It concludes that, while in general it may be correct to impose a reduced penalty on individuals who voluntarily disclose tax evasion, short-lived amnesties of the type most frequently observed in practice are unlikely to generate significant revenue when judged against the potential danger of reducing future tax compliance.
Tax amnesties have frequently been justified as politically popular ways to generate increases in government revenue. This paper examines the circumstances under which amnesties are likely to have a beneficial impact on revenue collections. It concludes that, while in general it may be correct to impose a reduced penalty on individuals who voluntarily disclose tax evasion, short-lived amnesties of the type most frequently observed in practice are unlikely to generate significant revenue when judged against the potential danger of reducing future tax compliance.
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