Chances of a Fiscal Amnesty

Amnesty represents forgiveness with the messagefast and immediate;
we convey. Amnesty is declared when taxpayers'• Reduces administrative costs of their collection;
cooperation with administration is low, and corruption• introduces a change of image management
has become a "disease" threatening to society and"soft" tax, in that the law would be very tough with
country. The step to decision for declaring amnestyany future delinquent;
has to be determined exactly in what problem is• Improves the behavior of taxpayers after the
fiscal system in its current state. If these problemsamnesty given the consequences that come from
are not verified precisely, the amnesty may bringthe undeclared associated with a package of
about more adverse effects than the benefitsenforcement authoritarian measures;
expected from it. Taxpayers will see that these• Individuals take part if the amnesty is
problems are not present and thus will keep hopeaccompanied by increased enforcement measures.
that another amnesty will deal with them.The individual will participate only when it believes
Countries have declared amnesty when theythat the controls and the amounts of fines will
concluded that some of the topics below are in theincrease and will be obtained strong measures against
"field":tax evasion multiform believing that this is the only
- Tax evasion is increasing;opportunity to
- The "black" economy is competing the rest of theExamples? Agree, I introduce...
economy;In June 2003, the German federal government
- Mostly of monetary circulation is moving in theproposed a draft law, taxpayers who provide a
"black "economy;"bridge to finesse the tax.
- Political corruption is becoming dangerous to theOffer to pass on this "bridge" would have some
formal economy, returning topolitical protectors forconditions:
tax breakers and fiscal evaders;- The taxpayer must declare the year 2004, the
- The level of fiscal tariff is high;total amount of all income subject to tax. These
- Fiscal system is determined not to be neutral;revenues would include a period disclose possible
- Tax culture is low;from 1992 until 2002.
- Human resources and audit are corrupted and- The taxpayer must pay within 10 days after the
ineffective;declaration made, an amount equal to 25% of the
- The strategic objectives announced are notamount stated. If the amount claimed would be after
achieved.the official deadline, the amount to be paid will be
Naturally, that there are other factors that areequal to 35% of declared income.
present as part of the specifications and theIf this had come about a form of tax evasion, the
economic and social development of the country.amount to be paid would be as 60% of gross
Orientation point from which to take a fiscal amnestyunreported income and 60% of all expenses that are
to consider would be the income of residents anddeducted as expenses deductible from taxable
non-residents or benefits from unreported sources ofincome. Similar rules were imposed and in cases of
income circulating in the investment:VAT evasion and tax on property.
- Technological equipment transport;As for the debate on an amnesty "giant" fiscal it is
- Construction and manufacturing;lukewarm and neither unsupported party from policy
- Financial services industry.or from the civil society. Perhaps civil society itself is
I can mention various construction works andnot ready or prepared to accept a "cleaning
buildings in rural areas and outskirts of cities andaccounts".
beyond, or sales of sites and different land in theFiscal amnesty is a "self-criticism" of the
Albanian market. For the case of resident individuals'administration by acknowledging that can be made of
income obtained abroad would be another aspectfiscal policy mistakes in the past, but now is a
where fiscal amnesty can focus in its program.determined political will to make corrections. Fiscal
Giving the right of its citizens, to declare unregisteredreforms, which are usually associated fiscal amnesty
assets, has been an important element for the resultare signals indicative of the path initiated by the
of amnesties in India and Colombia. Declaration ofgovernment. This connects with people to improve
assets in these countries encouraged taxpayers tothe political atmosphere of unwelcome aspects of
be very interested to answer the call of thepolitical and social life in the country. The government
amnesty.has the chance to show it wants to gain the trust of
Fiscal amnesty encourages voluntary spills of thattaxpayers, which their life is going to be equal with
part of taxpayers, who have not paid or had beenfiscal values of European culture.
unidentified by the fiscal administration to calculateFiscal amnesty is also a political instrument in the
the fees pertain. This would be open to the momentredistribution of fiscal burdens equally.
when the "gate" to enter the legitimate economy ofBut I think it should be careful with the fact, not to
the area as a rare opportunity and unrepeatable infeel dissatisfied regular taxpayers. These taxpayers,
the future. This incentive becomes effective whenwho have held the most serious fiscal burden for life
you understand that advertising is targeted by thismembers leave the informal economy benefiting
occasion, the force of law for them to be ruthless iffrom state services as well as those who have felt
they will remains out "door" open temporarily.the burden should feel more stimulated from the
Does has a positive result the fiscal amnesty in ourstate. But in fact stimulate take them through prayer
country?into the formal system with low price.
In fact, any government can give his own answers,In case of failing strong measures, amnesty hazard
but common is an amnesty that has benefits for theand fiscal administration authority of government.
budget because it:So careful amnesty, not violate the equality!
• There is an effect of increasing budget revenues