Impact Assessment of Tax Amnesties on Documenting Economy
Tax amnesties are introduced, largely, to allow for inclusion of non-documented economy in a country’s taxation system by encouraging taxable persons to declare unreported or underreported foreign as well as domestic assets; to revive economy and spur growth by encouraging a tax-compliant economy; to raise tax revenue for fiscal consolidation; to broaden the tax base for efficient and equitable taxation; and to improve tax compliance in the backdrop of weak enforcement due to limited tax capacity of tax authorities.
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