Problematic Issues of Tax System Development and Tax Amnesties (Example of Georgia)

Tax amnesty can be a very effective mechanism of tax policy. It is used to support economic growth, to relieve the burden of overdue debts, to legalize shadow capital. International experience confirms that the use of tax amnesties can cause some negative effects. The paper discusses the large-scale measures of tax amnesties implemented in Georgia, in the direction of writing off tax debts accumulated in previous periods. Tax amnesties, especially recurring amnesties, create an uncompetitive environment and destructive expectations among unscrupulous taxpayers. As a result, the behavior model of taxpayers is transformed in the wrong direction. The mentioned trends were confirmed by the results of statistical data analysis on the example of Georgia. We consider it necessary to strengthen the tax administration system, thereby reducing the possibility of new tax amnesties. It is necessary to create such preventive mechanisms that almost exclude the accumulation of unpaid amounts of taxes.