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Tax authorities worldwide are implementing voluntary disclosure schemes to recover tax on offshore investments. Such schemes are typically designed retrospectively following the bulk acquisition of information on offshore holdings, such as the recent Paradise and Panama papers. They offer an opportunity for affected taxpayers to make a voluntary disclosure, with reduced fine rates for truthful disclosure. We characterize the taxpayer/tax authority game with and without a scheme and show that a scheme increases net expected tax revenue, decreases illegal offshore investment, increases onshore investment, and could either increase or decrease total offshore investment (legal plus illegal).
Authors
Matthew D. Rablen
Matthew Gould
Working Paper details
- DOI
- 10.1920/wp.ifs.2018.W1807
- Publisher
- The IFS
Suggested citation
Gould, M and Rablen, M. (2018). Voluntary disclosure schemes for offshore tax evasion. London: The IFS. Available at: https://ifs.org.uk/publications/voluntary-disclosure-schemes-offshore-tax-evasion (accessed: 29 March 2024).
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