Definition

Tax amnesty (financial markets) (Fr. Amnistie fiscale, Ro. Amnistie fiscală, Gr. φοροαπαλλαγή)  = a time limited measure adopted by the national governments and implemented by the National Tax Authorities through which (some or a specific category) of tax payers are exempted from their fiscal obligations without facing criminal prosecution for tax fraud or tax evasion. Additionally, in such a case will be no tax liability. In most of the cases, each state adopts a special legal act in order to enforce this measure. Such an act can be addressed only to one specific tax payer or to a category.

Tax amnesty usually waives taxpayers’ tax liability and is one of the voluntary compliance strategies used by national governments to increase tax base and tax revenues.

Useful links

Legislation

http://www.dreptonline.ro/legislatie/legea_124_2014_masuri_veniturile_natura_salariala_personalul_platit_fonduri_publice.php - Bill regarding the fiscal amnesty for civil servants in Romania [Romanian]

https://home.kpmg.com/content/dam/kpmg/xx/pdf/2016/08/tnf-turkey-aug19-2016.pdf - Law No. 6736 for Restructuring of public receivables and Tax Amnesty in Turkey [English]

http://www.etudes-fiscales-internationales.com/media/01/02/704844724.pdf - Laws about tax amnesty in France [English]

Organisations and associations

https://www.anaf.ro - Romanian Tax Authority

https://ec.europa.eu/taxation_customs/home_en – DG Tax and Customs European Commission

https://www.irs.gov/ - Internal Revenue Service of USA

https://data.gov.uk/publisher/her-majestys-revenue-and-customs - Tax Authority from UK

https://www.oecd.org/tax/ - Organisation for Economic Cooperation and Development Tax Department

Case law

http://eur-lex.europa.eu/legal-content/FR/TXT/?uri=CELEX%3A62010CJ0417 - Case C-417/10, ECJ, Ministero dell'Economia e delle Finanze et Agenzia delle Entrate v. 3M Italia SpA. [Preliminary question] [French]

http://www.illinoiscourts.gov/opinions/supremecourt/2013/114234.pdf - Decision from 20th of June 2013 of the Illinois Supreme Court, Case Metropolitan Life Insurance Co. V. Hammer [English]

http://ec.europa.eu/dgs/legal_service/arrets/06c132_en.pdf - Case C-132/06, ECJ, Commission v Italy [English]

http://curia.europa.eu/juris/document/document.jsf?text=tax%2Bamnesty&docid=173525&pageIndex=0&doclang=en&mode=req&dir=&occ=first&part=1&cid=1002256#ctx1 – Opinion of the Advocate General in Case C-546/14, ECJ, Degano Trasporti S.a.s. di Ferrucio Degano & C., in liquidation [English]

http://curia.europa.eu/juris/document/document.jsf?text=tax%2Bamnesty&docid=182304&pageIndex=0&doclang=en&mode=req&dir=&occ=first&part=1&cid=1002624#ctx1 – Opinion of the Advocate General in Joined Cases C-20/15 P and C-21/15 P, ECJ, European Commission v World Duty Free Group, formerly Autogrill España SA (C 20/15 P), Banco Santander SA, Santusa Holding SL (C 21/15 P) [English]

Online publications

http://pfr.sagepub.com/content/42/6/774.abstract - Buckwalter N., Sharp N., Wilde J., Wood D., 2014, Are State Tax Amnesty Programs Associated with Financial Reporting Irregularities?, Public Finance Review [English]

http://qje.oxfordjournals.org/content/107/3/1057.abstract - Dubin, J., Graetz, M., Wilde L., 1992, State Income Tax Amnesties: Causes, The Quarterly Journal of Economics [English]

http://garj.org/garjeaf/8/2015/3/2/the-tax-amnesty-program-as-tool-to-adjust-the-shadow-economy-the-international-experiences - Mouloud M., 2014, The Tax Amnesty Program as Tool to Adjust the Shadow Economy: the International Experiences, Global Advance Research Journals, [English]

 

http://pfr.sagepub.com/content/41/3/275.abstract  - Ross J., Buckwalter N., 2013, Strategic Tax Planning for State Tax Amnesties: Evidence from Eligibility. Period Restrictions, Public Finance Review [English]

http://www.thejakartapost.com/academia/2016/07/13/the-benefits-of-tax-amnesty.html - Soepriyanto G., 2016, The benefits of Tax Amnesty, The Jakarta Post [English]

Publications

 

Codes, Joseph; Ebel, Robert; Gravelle, Jane; The Encyclopedia of Taxation&Tax Policy, 2nd ed., Washington, DC, USA; The Urban Institute Press [English]

Le Borgne, Eric; Baer, Katherine; 2008, Tax Amnesties: Theory, Trends and some alternatives, Washinton, DC, USA; International Monetary Fund [English]

Luitel, Hari; 2014, Is Tax Amnesty a good policy? Evidence from State Tax Amnesty Programs in the United States, London, UK, Lexington Books, [English]

Mendel, Jonathan; Bevacqua, 2010; John; International Tax Administration: Building Bridges, Sydney, Australia; CCH Autralia Limited [English]

Torgler, Benno; 2007; Tax Compliance and Tax Morale: A Theoretical and Empirical Analysis, Cheltenham, UK, Edward Elgar Publishing Limited [English]

 

By Daniela Ghicajanu