Required Practices for Successful Tax Amnesty

Enis Abdurrahmani,Zeki Doğan

doi:10.30560/jems.v2n3p1

Abstract

The tax amnesties have been used as economic performance tool to promote economic development, collection of public revenues in the short run and improvement of tax compliance in the country. The Republic of Kosovo has practiced their application twice during the past 10 years. The main purpose of this study is to provide practical guidance on the required actions for a successful tax amnesty. The survey method is used for data collection. Data processing is done through SPSS and statistical techniques. The major findings revealed key practices for a successful tax amnesty. Evidence has shown that most businesses which had previously evaded taxes are now regular taxpayers after the tax amnesty. Therefore, according to the results it is concluded that the success of tax amnesty depends on the fulfillment of certain conditions such as; the confidentiality of the tax amnesty beneficiaries, the time to take advantage from tax amnesty should be sufficient, facilitating tax amnesty procedures should encourage participation in the amnesty, it should be clear that no other tax amnesties will be repeated in the future, tax offices must be equipped with advanced technology and serious and strict sanctions must be applied after the tax amnesty.

Highlights

Tax amnesties are recognized as applied practices to create short-term quick revenues to meet budget deficits
This research is based on testing four hypotheses which are as follows; H1. It is a meaningful difference between taxpayers’ who participate in this research by their gender, regarding required actions for a successful tax amnesty
It is a significant difference between taxpayers’ who participate in this research by their education, about required actions for a successful tax amnesty

Summary

Introduction

Tax amnesties are recognized as applied practices to create short-term quick revenues to meet budget deficits. Tax amnesty is a government decision by which a certain number of taxpayers, who have not paid their taxes, are partially or completely exempted from penalties and tax obligation. The main purpose of tax amnesties is to encourage taxpayers to make voluntary disclosure of income in exchange for amnesty penalties or previous tax obligations. Tax amnesty as a modern practice plays an important role in the tax policies of developing countries. Tax amnesties may increase collection of tax revenues in the short run. Tax amnesties can have quite negative effects in the long run, through discouraging regular taxpayers from their unequal treatment

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Conclusion