Tax amnesty is the opportunity given to taxpayers to write off an existing tax liability (including interests and fines) by paying a defined amount. Such offers are usually presented as being exceptional and available for only a limited period of time. Amnesties can either be general or restricted to certain groups of taxpayers or taxes, and they routinely include the waiving of criminal and civil penalties.
Prevalence and Types of Tax Amnesties
Both local and central authorities grant tax amnesties. Over the past 50 years, the central governments of some developing countries (e.g., Argentina, Colombia, Brazil, India, the Philippines, Turkey) have repeatedly offered amnesties (Le Borge and Baer 2008), as have the central governments of developed countries plagued by specific economic problems such as recession, financial crisis, and large public debt (e.g., Ireland, Italy, Spain, Greece, Portugal). Many developing and developed countries have also occasionally resorted to...
- Alm J, Beck W (1993) Tax amnesties and compliance in the long run: a time series analysis. Natl Tax J 46:53–60Google Scholar
- Baer K, Le Borgne EL (2008) Tax amnesties. IMF, Washington, DCGoogle Scholar
- Cannari L, D’Alessio G (2007) Le opinioni degli Italiani sull’evasione fiscale, vol 618, Temi di discussione. Bank of Italy, RomaGoogle Scholar
- Cassone A, Marchese C (1995) Tax amnesties as special sales offers: the Italian experience. Public Finance/Finance Publiques 50:51–66Google Scholar
- Cassone A, Marchese C (1999) The economics of religious indulgences. J Inst Theor Econ 155:429–442Google Scholar
- Franzoni LA (1996) Punishment and grace: on the economics of tax amnesties. Public Finance 51:353–368Google Scholar
- Grossman GM, Katz ML (1983) Plea bargaining and social welfare. Am Econ Rev 73:749–757Google Scholar
- Le Borgne E (2006) Economic and political determinants of tax amnesties in the U.S. States. IMF WP 706/222Google Scholar
- Mikesell JL (1986) Amnesties for state tax evaders: the nature of and response to recent programs. Natl Tax J 39:507–525Google Scholar
- OECD (2010) Offshore voluntary disclosure, comparative analysis, guidance and policy advice. OECD, ParisGoogle Scholar