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

Author

Listed:
  • Juliana Londoño-Vélez

    (UCLA)

  • Dario Tortarolo

    (University of Nottingham)

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.

Suggested Citation

  • Juliana Londoño-Vélez & Dario Tortarolo, 2022. "Revealing 21% of GDP in Hidden Assets: Evidence from Argentina’s Tax Amnesties," Working Papers 006, EU Tax Observatory.
    • Handle: RePEc:dbp:wpaper:006
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    File URL: https://www.taxobservatory.eu//www-site/uploads/2022/10/EUTO_WP6_LondonoTortarolo_ArgentinaAmnesty_v4.pdf
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    More about this item

    Keywords

    tax evasion; offshore wealth; amnesties; enforcement; Agrentina;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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