SUNDAY DECEMBER 30: Global comparison of amnesty schemes: evaders offered cheapest tax deal

ISLAMABAD: A global comparison of amnesty schemes done by Federal Board of Revenue (FBR) revealed that Indian tax authorities have collected INRs 98 billion with 475,477 declarations filed under the Voluntary Income Disclosure Scheme (VDIS). It is learnt here on Saturday that the FBR has carried out an analysis of the recent international amnesty schemes.
The comparison disclosed that the FBR is offering exceptionally low tax for legalisation of undisclosed assets/income and registration with the tax department. According to the FBR analysis of international amnesty schemes, Israeli Tax Authority (ITA) launched a voluntary disclosure programme in November 2011 for Israeli tax residents holding foreign assets. The deadline was again extended to September 27, 2012.
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 yielded euro 80 billion, while the Bank of Italy estimated that Italian citizens held around euro 500 billion in undeclared funds outside the country.
Portugal: Portugal introduced tax amnesties in 2005 and 2010.
Russia: In 2007, a Russian tax amnesty programme collected $130 million in the first six months. The Russian programme was not open to anyone previously convicted of tax crimes such as tax evasion.
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 regularise 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.
India: Voluntary Income Disclosure Scheme (VDIS) was launched in 1997 and 475,477 declarations were filed yielding collection of InRs 98 billion.
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.
Texas: Fresh Start Amnesty 2012.
United States: In 2009, a federal US tax amnesty was granted to more than 14,700 American taxpayers.
Mexico: The Congress approved a tax amnesty on December 13, 2012. Under the tax amnesty, taxpayers will be able to settle tax liabilities for years 2006 and prior with forgiveness of up to 80 percent of the omitted tax and inflation adjustments and up to 100 percent of interest and penalties, the FBR added.