Evaluating the Use of Tax Amnesty by State Governments

Parle, William M.; Hirlinger, Mike W.

doi:10.2307/3110440

Cited by 34 publications

(30 citation statements)

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“…Tax amnesties “provide delinquent taxpayers with a one‐time opportunity to clear their accounts by paying back taxes and interest without being subject to criminal or civil penalties” (Parle and Hirlinger 1986, 246). Most studies on tax amnesties take an economic perspective, neglecting social psychological variables (Alm and Beck 1991, 1993; Alm, McKee, and Beck 1990; Andreoni 1991; Fisher, Goddeeris, and Young 1989; Malik and Schwab 1991).…”

Section: Introductionmentioning

confidence: 99%

“…The benefits of tax amnesties for the government are the opportunity to raise revenues in the short run, the chance to bring tax evaders back on the right track of tax compliance along with facilitating monitoring of their future compliance, the ability to provide a soft option for those who evaded out of a mistake, and the opportunity to show that the government cares about tax evasion (Hasseldine 1998; Lerman 1986; Malik and Schwab 1991; Parle and Hirlinger 1986; Torgler, Schaltegger, and Schaffner 2003; Wenzel 2003). Furthermore, amnesties may support the transition to a new tax system with stricter enforcement measures (Alm, McKee, and Beck 1990).…”

Section: Introductionmentioning

confidence: 99%

“…Furthermore, when taxpayers anticipate further amnesties, they may lower their tax compliance. Particularly honest taxpayers could consider it unfair when tax evaders get away without punishment (e.g., Hasseldine 1998; Parle and Hirlinger 1986).…”

Section: Introductionmentioning

confidence: 99%

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Tax Amnesties, Justice Perceptions, and Filing Behavior: A Simulation Study

et al. 2010

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A simulation study demonstrates the influence of perceived justice of a tax amnesty on subsequent tax compliance. In addition, it investigates how the amnesty is perceived to serve the punishment objectives retribution (i.e., giving offenders what they "deserve") and value restoration (i.e., restoring the values violated by tax evasion). Hierarchical regression analysis revealed the expected positive influence of justice on subsequent tax compliance. However, when the influence of punishment objectives was controlled for, the influence of justice disappeared, while retribution and value restoration showed positive effects on post-amnesty tax compliance.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Tax Amnesties, Justice Perceptions, and Filing Behavior: A Simulation Study

et al. 2010

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“…This empirical research has essentially focused on three aspects. First, a series of works have highlighted the role that tax amnesties can play in favouring the transition to tax environments characterised by a more rigorous prosecution of fraud (Mikesell, 1986;Parle and Hirlinger, 1986;Uchitelle, 1989;Alm, McKee and Beck, 1990;Alm and Beck, 1991). Secondly, other authors (Fisher, Goddeeris and Young, 1989;Das-Gupta and Mookherjee, 1995) have emphasised the limited contribution of tax amnesties in the incorporation of new taxpayers.…”

Section: Introductionmentioning

confidence: 99%

Tax Amnesties and Income Tax Compliance: The Case of Spain

Laborda

Rodrigo

2003

Fiscal Studies

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The aim of this paper is to evaluate the long‐term impact on Spanish individual income tax (IRPF) compliance of the amnesty measures granted in 1991 within the framework of the 1988–91 income tax reform programme. To that end, we combine time‐series techniques with outlier detection methods and the Bai and Perron (1998) test for the endogenous estimation of structural breaks. On the basis of the analysis of the monthly IRPF tax collection series from 1979 to 1998, we find that the amnesty had no effect on tax collection in either the short or the long term. By contrast, we find evidence of the permanent positive impact caused by the legislative and administrative measures linked to the IRPF reform process begun in 1988.

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“…Furthermore, the tax amnesty law also goes against the principle of equality before the law, as outlined in Article 28D of the Indonesian Constitution. This is because of the "exclusive right" not being punished or prosecuted using the data contained in the tax amnesty program, granted by the Indonesian government to taxpayers who follow the tax amnesty program and the repatriation of assets (Sholihah 2016); whereas, tax amnesty as a public policy should consider fairness or equity for all people (Parle and Hirlinger 1986). The convenience provided in the tax amnesty policy should be limited to matters relating to taxation violations only.…”

Section: Hampering the Work Processes Of Other Law Enforcement Agenciesmentioning

confidence: 99%

Tax Policy in Action: 2016 Tax Amnesty Experience of the Republic of Indonesia

Said

2017

Laws

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Tax amnesty programs are often used by governments to improve tax compliance and to increase tax revenue. However, the policy choice to provide a tax amnesty often results in adverse consequences, including the violation of other legal rules. For this reason, the policy choice to offer a tax amnesty ('tax amnesty policy') is often controversial. The tax amnesty policy and resulting program offered by the Government of Indonesia has been criticized both because it is considered to be unfair and because it favors the perpetrators of tax evasion. In particular, the tax amnesty law offered special treatment to taxpayers who participated in the program, such as no checking of the source of funds, no checking of the financial statements reported by law enforcers, protection from punishment on the financial reports provided to the Director General of Taxation, and the requirement to pay only a small penalty. Tax amnesty programs also provide the potential for money laundering. This is certainly the case in Indonesia. In addition, tax amnesty programs weaken law enforcement in Indonesia; in particular, in the areas of corruption and money laundering. This is because law enforcement officers cannot investigate the perpetrators of white-collar crime that benefit from the tax amnesty program. Under the terms of the tax amnesty program, the financial data is not accessible by them.

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Evaluating the Use of Tax Amnesty by State Governments

Cited by 34 publications

References 0 publications

Tax Amnesties, Justice Perceptions, and Filing Behavior: A Simulation Study

Tax Amnesties, Justice Perceptions, and Filing Behavior: A Simulation Study

Tax Amnesties and Income Tax Compliance: The Case of Spain

Tax Policy in Action: 2016 Tax Amnesty Experience of the Republic of Indonesia

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