Tax Amnesty - Tax Amnesty Irs

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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.

IRS Offshore Amnesty Programs | TAX INTELLIGENCE



Instances

Australia

Australia launched tax amnesties in 2007 and 2009.

Belgium

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.

Germany

In 2004 Germany granted a tax amnesty in connection with tax evasion.

Greece

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.

Italy

Italy introduced a tax amnesty in 2001 that came to be known as Scudo Fiscale (English: Tax Shield), which was extended in 2003.

In 2009 the Italian tax amnesty subjected repatriated assests to a flat tax of 5%. In total around EUR80 billion in assets were declared, which resulted in tax revenues of EUR4 Billion. The Bank of Italy estimated that Italian citizens held around EUR500bn in undeclared funds outside the country.

Portugal

Portugal introduced tax amnesties in 2005 and 2010.

Russia

In 2007, a Russian tax amnesty program collected $130 million in the first six months. The Russian program was not open to anyone previously convicted of tax crimes such as tax evasion.

South Africa

In 2003 South Africa enacted the Exchange Control Amnesty And Amendment of Taxation Laws Act, a tax amnesty.

Spain

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.

United States

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.



Further reading

  • 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. 
IRS Offshore Amnesty Programs - FAS CPA & Consultants


References



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