Revealing 21% of GDP in Hidden Assets: Evidence from Argentina’s Tax Amnesties

Juliana Londoño-Vélez () and Dario Tortarolo ()
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Juliana Londoño-Vélez: UCLA
Dario Tortarolo: University of Nottingham

No 6, Working Papers from EU Tax Observatory

Abstract: We study the effectiveness of tax amnesties and their impacts on capital taxation and public spending. We leverage rich policy variation from Argentina, which implemented the world’s most successful program, reportedly revealing assets worth 21% of GDP. First, despite substantial offshore tax evasion, declared foreign assets quadrupled. Second, tax progressivity improved because disclosures were extensive among the wealthiest 0.1%. Third, improving tax compliance has sizable fiscal externalities on capital taxes and social transfers: the wealth and capital income tax bases more than doubled, and the earmarked revenue boosted pension benefits by 15%. We end by discussing the lessons from Argentina.

Keywords: tax evasion; offshore wealth; amnesties; enforcement; Agrentina (search for similar items in EconPapers)
JEL-codes: D31 H26 H31 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2022-10
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