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.
Australia launched tax amnesties in 2007 and 2009.
In 2004 the Belgian Parliament adopted a law allowing individuals subject to Belgian income tax to regularize the undeclared, or untaxed, assets they held before June 1, 2003.
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.
In 2009 the Italian tax amnesty subjected repatriated assests 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.
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.
In 2009, a federal U.S. tax amnesty was granted to more than 14,700 American taxpayers.
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.
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.
- Bornukova, K., Kruk, D., Shymanovich, G., & Tserlukevich, Y. (2014). Tax Amnesty (in Russian) (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
- Daley, Suzanne (February 20, 2011). "Greece's Efforts to Limit Tax Evasion Have Little Success". The New York Times.
- "EU Commission tells Greece to change tax amnesty". Reuters. February 16, 2011.
- Browning, Lynnley (November 18, 2009). "14,700 Disclosed Offshore Accounts". The New York Times.
- State Tax Amnesty Programs
- Boston Globe: Kennedy, McCain try again on immigration. 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.
- David Parent: IRS Audits of Offshore Accounts Retrieved October 26, 2013