Fears that proposed tax amnesty will be used to legalize criminal assets

Governmental proposals to change the tax law would allow citizens to come forward and reveal their hidden assets or property without facing the full consequences of the current law. Under a tax amnesty scheme prepared by Finance Minister Kolodko, citizens will be able to own up to sums they had not declared to the fiscal authorities, and rather than pay the usual penalty tax of 75%, they will be able to pay just 7.5% on the sum declared. The proposal has to be accepted by Parliament, but has already led to an outcry. First, those who wish to take advantage of the proposal will have to prepare a declaration of personal assets, which has unsavory connotations. The opposition has jumped on the proposal saying that most people would not use the opportunity. "There is a serious threat that some will try to legalize earnings from highly criminal activities," said Robert Gwiazdowski, a tax analyst with the Adam Smith Institute. The Finance Ministry has calculated that a considerable sum would be raised even with the 7.5% rate proposed and so help a heavily indebted budget. (Rzeczpospolita, pp. A1, B1; Zycie pp, 1, 6, 7) M.M.