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Why is Tax Amnesty Inefficient – CASE Ukraine’s Expert Opinion

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Having initiated the law on tax amnesty, the government claims readiness to start working with taxpayers “from the blank page” and to liquidate the tax evasion schemes exiting in the past, Center CASE Ukraine’s economist Natalya Leschenko writes in her column for portal “Delo”.

“International experience and Ukrainian reality show that tax amnesty plays auxiliary role and is inefficient without actions aimed to eliminate the causes of shadow economy and tax evasion. In other words, tax amnesty would not be efficient, if it is introduced by the government which hasn’t gained trust, regardless of general reforms, aimed at decreasing tax burden, equalizing conditions of doing business, reducing spending on paying taxes, deregulating enterprises’ activities and strengthening juridical guarantee of protection of ownership rights”.

Please, follow the link to read the column (in Russian).

June 15, 2014