Tax Amnesties and Income Tax Compliance: The Case of Spain

Abstract

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.

The Analysis of Attitudes of Tax Amnesty Non-Beneficiaries and Tax Amnesty Beneficiaries: Evidence From Turkey

“…According to the results of this research, most of tax amnesty beneficiaries and nonbeneficiaries grant "I think that the revenues from tax amnesties will provide an important contribution to the state treasury" attitude statement at almost 70% level on average. This result is not supported with the literature study made by Uchitelle (1989) and the result of research conducted by Laborda and Rodrigo (2003). Furthermore, while this result supports the literature view Alm (1998) that tax amnesty can contribute to the treasury in the short term, it doesn't support the results of belonging to the research Alm and Beck (1993) and Christian et al (2002) that tax amnesty can contribute to the treasury in the long term.…”

“…The result of a study conducted by Christian et al (2002) regarding income tax amnesty shows consistency with the conclusion of research conducted by Alm and Beck (1993). On the other hand, the result of a research conducted in Spain by Laborda and Rodrigo (2003) with the aim of revealing the relationship between tax amnesty and tax compliance shows that tax amnesties do not have an effect on tax collection. Torgler et al (2003) have done an empirical study on how tax amnesties would have an impact on Costa Rica and Switzerland, which have different cultures.…”

The occurrence of tax amnesties: Theory and evidence

“…A major strength of our model is that is can also capture more traditional channels to explain the amnesty take up puzzle, such as strategic tax planning or the avoidance of punishment if detection is 1 While research on this issue is generally scarce, there exists a broad literature on the fiscal implications of tax amnesties. Evidence from US states on the (short and long run) revenue impact of amnesties is provided by Mikesell (1986), Fisher, Gooderis and Young (1989), Beck (1991, 1993), Christian, Gupta and Young (2002), Luitel and Sobel (2007) or Mikesell and Ross (2012), among others; Uchitelle (1989), Cassone and Marchese (1995), Alm, Martinez-Vazques and Wallace (2000) or Lopez-Laborda and Rodrigo (2003) investigated amnesties outside the US. Baer and Le Borgne (2008) provide an overview over recent amnesties in-and outside the US.…”

The Fulfilment of Tax Obligation in Case of Slovenian Tax Residents Working in Other Countries

“…Also, Alm, Jackson and McKee (1992) and Plumley (2002) investigated the meaning of punishments and the inspection supervision on the individuals' fulfilment of tax obligations. Lopez-Laborda and Rodrigo (2003) analyse the impact of tax amnesty on the fulfilment of obligations arising from personal income tax. The authors find out that the amnesty didn't had neither a short nor long-term impact on the behaviour of taxpayers.…”