Tax amnesty is a limited-time opportunity for a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability (including interest and penalties) relating to a previous tax period or periods and without fear of criminal prosecution. It typically expires when some authority begins a tax investigation of the past-due tax. In some cases, legislation extending amnesty also imposes harsher penalties on those who are eligible for amnesty but do not take it. Tax amnesty is one of voluntary compliance strategies to increase tax base and tax revenue. Tax amnesty is different from other voluntary compliance strategies in part where tax amnesty usually waives the taxpayers' tax liability.
Introduction of Amnesty scheme in any fiscal year is to help State treasury raising tax revenues, adding beneficiaries in tax base who have not declared their assets previously. The main purpose of inception of this scheme is to replicate the economy and encouraging individuals, Association of Persons and Corporations to declare their wealth as it may arises. Under this scheme the beneficiary just has to pay some tax on the total assets which are declared in Amnesty scheme. State introduce this scheme when they believe that individuals are hiding their wealth from the tax authorities.  
Tax revenues raised through these schemes are used for the well being of State. Every individual, company has to report annually on their business activities in their tax return, file to Revenue and Tax authorities of State. Those who remains transparent in declaring their assets and liabilities to the tax authorities do not get inquiries or investigations instead.
Tax Amnesty scheme is beneficial for those who has been hiding or not declaring their assets fair & transparently for years, can make their assets legitimate by declaring them whether they exist within or outside Country. 
When such schemes are introduced State Revenue and Tax department give time to declare their wealth without any penalty. Once time elapses there will be penalty addition to original Amnesty tax rate.
- 1 Reasons for Tax amnesty
- 2 Negative effects
- 3 Instances
- 4 Further reading
- 5 References
Reasons for Tax amnesty
There are several possible reasons for tax amnesty.
During the crisis period financial difficulties of taxpayers as well as increased public expenditures may occur. Tax amnesties are considered necessary in order to collect at least some of the tax claims. It also helps relieve the taxpayers, who are unable to pay tax debts, and revive the market.
Possibility of tax amnesty may be used by political parties to gain more votes when the next election period is about to come. Determination of the extent of the amnesty is entirely political decision and is in the government’s power.
Technical and administrative reasons
For resolving existing confusions, defective points of the system and making radical changes on the tax system liquidation of past periods may be necessary. It is also hard and administratively exhaustive to collect tax debt from taxpayers in financial difficulties. Tax courts have heavy job workload and collecting of taxes takes a long time. Tax amnesty is easy and beneficial way to solve these administrative difficulties.
We mentioned several positive effects and reasons for tax amnesty but most of them are effects only in the short run. Tax amnesty have also many opponents because of the long-therm effects on society. The main reason is that we must be all equal in terms of law and justice. Tax amnesty gives an advantage to those who break the law. People lose confidence in justice and punishments lose its effectiveness. It may lead to decreasing morality and increasing tax crimes. Some of these negative effects may be eliminated with strict regulation and careful choice of who will be tax amnesty applied on.
In 2014, in the first amnesty ever offered in Australia, thousands of rich Australian came forward to declare billions of dollars in untaxed assets and income stashed in bank accounts in Switzerland and in other countries. The vast majority of voluntary disclosures were related to income and shares.
Canada has a tax amnesty under both the Income Tax Act for income tax related offences and under the Excise Tax Act for GST/HST (goods and services tax/ harmonized sales tax) matters. The tax amnesty is referred to by the Canada Revenue Agency as the Voluntary Disclosure Program (VDP) and has its statutory authority under subsection 220(3.1) of the Income Tax Act and the sections 88 and 281.1 of the ETA which set out the rules for taxpayer relief applications. This relief is available for a 10-year period prior to the date of filing and covers unfiled tax returns and unfiled information returns such as offshore asset forms T1135 or T1134, as well as tax evasion in the form of unreported income or over claimed expenses or deductions. Eligible taxpayers will receive full penalty relief, will avoid any possible tax evasion prosecution and may obtain some interest reductions.See more details at Canadian Tax Amnesty.
In 2004 Germany granted a tax amnesty in connection with tax evasion.
On September 30, 2010, the Hellenic Parliament ratified a legislation pushed through by the Greek government in an effort to raise revenue, granting tax amnesty to millions of Greek citizens by paying just 55 percent of the outstanding debts. In 2011, the European Commission requested Greece to modify its tax legislation as its tax amnesty was considered discriminatory and incompatible with European Union treaties.
After several tax amnesties program launched in 1964, 1984 and 2008, Indonesia has applied another tax amnesty in 2016. Finally, after 3 consecutives 3 months periods in 2016 and 2017, ended on March 31, 2017, repatriation commitment was Rp 146.6 trillion, but the realization was Rp 128.3 trillion or about $9.61 billion. While asset declaration was Rp 4,855 trillion from 956 thousands tax payers. The result is very successful. It is new world record, tumbles 2009 Italy tax amnesty program with Rp 1,179 trillion and repatriated Rp 59 trillion.
In 2009 the Italian tax amnesty subjected repatriated assets to a flat tax of 5%. In total around €80 billion in assets were declared, which resulted in tax revenues of €4 Billion. The Bank of Italy estimated that Italian citizens held around €500bn in undeclared funds outside the country.
It was introduced during Budget 2019 announcement on 2nd November 2018. 
Pakistan introduced tax amnesty scheme in 2018 which yield $ 1 billion or Rs 121 billion tax revenues from individuals, Association of Persons & Corporations who declare their assets in this scheme. 
Portugal introduced tax amnesties in 2005 and 2010.
In 2012 the Spanish Minister of Economy and Competitiveness Cristóbal Montoro announced a tax evasion amnesty for undeclared assets or those hidden in tax havens. Repatriation would be allowed by paying a 10 percent tax, with no criminal penalty.
Many U.S. states have had tax amnesties. The City of Los Angeles collected $18.6 million in its 2009 tax amnesty program, claiming that the amount was $8.6 million more than was expected and that businesses saved $6.7 million in penalties. The state of Louisiana brought in $450 million from its 2009 tax amnesty program, three times more than what was expected, according to Republican Governor Bobby Jindal.
The IRS Criminal Investigation Division has had a longstanding practice of granting tax amnesty to taxpayers who have committed tax crimes, usually tax evasion. Following World War II, it was the administrative policy of the Internal Revenue Service to provide amnesty from criminal prosecution to taxpayers who voluntarily disclosed their underpayment of taxes. Although protected from criminal prosecution, such taxpayers still were subject to any civil penalties or interest that applied with respect to the delinquent taxes.
In a 2007 United States Senate bill that did not become law, a tax amnesty for illegal immigrants was proposed. The tax amnesty was supported by then-president George W. Bush and his Homeland Security Secretary Michael Chertoff.
On June 26, 2012, IRS Commissioner Doug Shulman said the IRS offshore voluntary disclosure programs has so far collected more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs.
- (in Russian) Bornukova, K., Kruk, D., Shymanovich, G., & Tserlukevich, Y. (2014). Tax Amnesty (No. 21). Belarusian Economic Research and Outreach Center (BEROC).
- Jacques Malherbe (2011). Tax Amnesties. ISBN 978-90-411-3364-9.
- "The traps in amnesty for taxes". Archived from the original on 2008-04-29.
- Update on Voluntary Disclosure Programmes A Pathway to Tax Compliance. OECD. p. 14.
- Australia: Tax amnesty for offshore income announced
- ATO tax amnesty nets billions, but hunt for rich with secret Swiss accounts continues
- "Canadian Tax Amnesty is a program offered by the Canada Revenue Agency to report unreported income and assets without any penalties". Voluntary Disclosure website. Canadian Tax Amnesty Service. Retrieved 2016-06-09.
- "German Tax Package 2004: A Summary - Tax - Germany". www.mondaq.com.
- Daley, Suzanne (February 20, 2011). "Greece's Efforts to Limit Tax Evasion Have Little Success". The New York Times.
- "Subscribe to read". Financial Times.
- "EU Commission tells Greece to change tax amnesty". Reuters. February 16, 2011.
- Bantengsuper (April 27, 2017). "Dana Repatriasi Amnesti Pajak Banyak Mengendap di Bank".
- "Ini Penyebab Dana Repatriasi Masih Banyak Mengendap di Bank Menurut Apindo". April 3, 2017.
- "Indonesia's Tax Amnesty Program Breaks World Record". Retrieved December 2, 2016.
- "Tax Amnesty Allows Regularization of Undisclosed Foreign Assets and Activities". International Law Office. 16 October 2009.
- Cohen, Sabrina; Clark, Jennifer (23 December 2009). "Italy's Tax Amnesty Brings in $114 Billion" – via www.wsj.com.
- "Subscribe to read". Financial Times.
- "Budget 2019 Highlights Live". The Star (Malaysia).
- "Russian Tax Amnesty Yields $130m". www.tax-news.com.
- Minnick, Ryan. "Home". www.taxadmin.org.
- "Louisiana Tax Amnesty program brings in $450 million".
- "Kennedy, McCain try again on immigration". Boston Globe. February 28, 2007.
- "IRS Says Offshore Effort Tops $5 Billion, Announces New Details on the Voluntary Disclosure Program and Closing of Offshore Loophole". IRS website. US Internal Revenue Service. Retrieved 2012-06-29.
- Çakır, Adnan Can. "An Evaluation of Tax Amnesty with Positive and Negative Effects".