An Economic Analysis Of Tax Amnesties

Download or read book An Economic Analysis of Tax Amnesties written by International Monetary Fund and published by International Monetary Fund. This book was released on 1989-05-11 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.