Fiscal Amnesties - Taboo Or Reality?

In September 2001, the Italian governmentfiling to do, an amount equal to 25% of the
approved the decision to launch the program foramount stated. If the stated amount would be
repatriation of capital abroad and assets forafter the official deadline as above, the amount
individuals' resident in Italy. This program aimed atpaid would be equal to 35% of declared income.
increasing tax revenue was the objective:a.If it had come to make a form of tax evasion,
Repatriation to Italy of asset values and outsidethe amount to be paid would be as 60% of
the country;b. Disclosure of these assets, withoutunreported gross income and 60% of all
the need for repatriation.expenses that are deducted as expenses
Under the program required the payment ofdeductible from taxable income. Similar rules were
individuals equal to 2.5% of declared asset valueimposed and in cases of VAT evasion and tax on
(in exchange for payment of 2.5%, the stateproperty.
would give the treasury bonds as 12% of theTo help the functionality of these principles in all
total declared value of the asset). The individualcountries that have similar objectives have been
also had to meet, a statement of specialorganized and a series of seminars and published
confidence and to deliver to an Italian bank ormaterials are different, so that most countries
intermediate, with certified to make the final forwith the idea of an exchange of information, a
the individual asset fiscal authorities. Although thisfunction of goals reciprocal of their countries'
program is still continuing and had not be fromadministrations.
November 2001 to May 2002, it resulted in someThus, in a seminar organized in view of this
effects on the budget being certified billions in thispurpose by the OECD, the participants of some
way and many assets of individuals andBalkan countries and former socialist countries of
encouraged volunteerism in the statementCentral and Eastern Europe, declared that under
through a clear and practical legal. Similarnational legislation, they can receive data from
measures have been undertaken and thebanks and can exchange information with another
statements of individuals with activity within thestate, which are associated with agreement.
country.In Russia, there is an automatic reporting of
IRS- (agency for revenue collection in USA)banks for tax administration about transactions
announced in December 2002 that it had revisedworth individuals and individuals for transactions
and updated a standard practice that helps thegreater than U.S. $ 10,000. Opening of account
investigative agencies in determining the case fornumbers is carried out freely to everyone, but
certain individuals, if they are subject to criminalthe account holder must present the identity card
prosecution or not. In the following selectionand bank-in his NIPT. Meanwhile, Russia can
criteria for the determination of the case willexchange information to meet the demands of
affect factors such as taxes shed legal terms,another party, which has made the agreement.
disclosure and voluntary disclosure of additionalBut the idea of a fiscal amnesty for the
liability to pay, as a result of all income nonrepatriation of capital invested outside Russia has
reported.found greater popularity. In these proposals are
In this evaluation and selection procedureincluded ministers and the president, in order to
according to risk analysis, modernization ofcreate favorable conditions for the return of
technology has provided important assistance tocapital. Debate on this topic has to be in Russia
increase the qualification standards andfor years, but until now has been only
administrative operations. Numerous exampleshypothetical framework. This debate seems to
illustrate the new standards, which are helpful inhave taken track, after a report that linked the
eradicating for periods of favorable evaluations ofgrowth of GDP in the country with the
voluntary disclosure of unreported income orrepatriation of capital abroad.
individual assets. Punitive measures and published inPursuant to these experiences, and our country
the media or the Internet have spread clearhave adopted such laws in order to fight
message that this is a process to help individualsorganized criminal elements fiscal. On the other
to voluntary statements. As before, the practicehand setting limits and performance enforcement
requires the taxpayer to have an unwaveringmeasures for transactions outside the banking
trust in the correct execution of agreements bychannels, has led to increased formalization of the
the administration. These practices, however,income of individuals from one year to another.
does not include those individuals who have illegalHowever, reporting of banks, such as automatic
sources of their incomes. They are subject toor at the request level is limited and not yet
penalties under law for all acts incriminatedmade an influential factor in increasing tax
persons and criminals including fiscal.revenue.
In December 2002, German Chancellor GerhardRegarding the debate of a fiscal amnesty it is
Schroeder announced plans to tax with 25% bankvery dim and generally not advocated from
interest, as well as plans for fiscal amnesty in aidneither side of politics or civil society part. Perhaps
of German residents, who will declare assetsseparate civil society is not ready or prepared to
abroad. In June 2003, the government proposed aignite within her such a debate. This debate has
draft law which taxpayers provide a "bridge tofound support to be turned into a popular debate,
finesse the tax.only a few statements that supported the
Offer to pass on this "bridge" would have someformer president Meidani to solve numerous
conditions:problems that undertakes the conduct of this
- The taxpayer must declare the beginning ofamnesty in our country. My opinion is that the
2004, prior to the start of 2005 the total amountappropriate time would be maybe 2-3 years,
of all tax revenues, which may be subject to tax.when some macroeconomic index will be
These benefits will include a disclosure period frompresented in the correct order. Time is the only
1992 until 2002.supporting factor, which is currently allied fiscal
- The taxpayer must pay within 10 days afterdebate in the country.