Providing amnesty for tax evasion

Rescheduling tax payments

Description

Providing amnesty for tax evasion involves offering individuals or entities who have previously evaded taxes the opportunity to declare undisclosed income and settle outstanding liabilities without facing prosecution or severe penalties. This strategy aims to recover lost public revenue, broaden the tax base, and encourage future compliance. By granting limited-time relief, authorities can address widespread non-compliance, improve fiscal transparency, and reintegrate offenders into the formal tax system, thereby strengthening overall tax administration.

Context

It serves no purpose to have a tax assessed but not paid. In some countries the problem of tax arrears has become so critical that governments have taken emergency measures such as tax amnesties and provisions for rescheduling tax payments. These make it easier to collect delinquent taxes, but they can also undermine voluntary compliance if used frequently.