taxpayers to pay back the full sum in easy instalments over a longer time frame. Hence, investors gain because they can earn interest on the unpaid tax as well. Legal In some cases, legal immunity is not provided, so if the taxable income was generated from some illicit activity like drug smuggling or other criminal endeavours, the government could still prosecute the taxpayer. On the other hand, there are some tax amnesty schemes that provide legal amnesty as well. These schemes basically promise that the government will simply close their eyes to the source of the taxable income as well. The government promises to not conduct any investigation or disclose any information after they receive the tax revenue, which is due to them. Reasons There are several possible reasons for tax amnesty. Economic and financial During the crisis period, financial difficulties of taxpayers as well as increased public expenditures may occur. Tax amnesties are considered necessary in order to collect at least some of the tax claims. It also helps relieve the taxpayers, who are unable to pay tax debts, and revive the market. Political Possibility of tax amnesty may be used by political parties to gain more votes when the next election period is about to come. Determination of the extent of the amnesty is entirely a political decision and is in the government’s power. Technical and administrative For resolving existing confusions, defective points of the system, and making radical changes on the tax system, liquidation of past periods may be necessary. It is also hard and administratively exhaustive to collect tax debt from taxpayers in financial difficulties. Tax courts have a heavy job workload and collecting taxes takes a long time. Tax amnesty is an easy and beneficial way to solve these administrative difficulties. Negative effects Many positive effects and reasons for tax amnesty are effects only in the short run. Tax amnesty have also many opponents because of the long-term effects on society. The main reason is that we must be all equal in terms of law and justice. Tax amnesty gives an advantage to those who break the law. People lose confidence in justice, and punishments lose their effectiveness. It may lead to decreasing morality and increasing tax crimes. Some of these negative effects may be eliminated with strict regulation and careful choice of who can receive tax amnesty. Tax amnesty is a limited-time opportunity for