Jurisdictions may enter into tax treaties with other countries that establish rules to avoid double taxation. These contracts often contain provisions for the exchange of information in order to prevent tax evasion. For example, when a person seeks a tax exemption in one country on the basis of non-residence in that country, but does not declare it as a foreign income in the other country; Or who is asking for local tax relief for a foreign tax deduction at the source that did not actually occur. [Citation required] In 2011, HMRC, the UK`s tax collection agency, said it would continue to tackle tax evasion with the goal of generating $18 billion in revenue by 2015. [Citation required] In 2010, HMRC launched a voluntary amnesty program for middle-class professionals that raised $500 million. [14] Agreement between the Government of the Russian Federation and the Government of the Republic of Albania on the prevention of double taxation on income and capital taxes A document by economists Annette Alstads├ęter, Niels Johannesen and Gabriel Zucman, which used data from HSBC Switzerland (“leaks”) and Mossack Fonseca (“Panama Papers”) , noted that “on average, about 3% of personal taxes in Scandinavia, but this figure rises to about 30% in the top 0.01% of the asset allocation… When tax evasion is taken into account, the increase in tax inequality has increased significantly since the 1970s, underscores the need to go beyond tax data to capture income and wealth at the top, even in countries where tax compliance is generally high. We also find that after reducing tax evasion – using tax amnesty – tax evaders no longer legally avoid tax. This result suggests that the fight against tax evasion can be an effective way to generate more tax revenue from the ultra-rich. [24] Tax evasion is an activity often associated with the informal economy. [1] Measuring the extent of tax evasion (“tax gap”) is the amount of unreported income, that is, the difference between the amount of income that should be reported to the tax authorities and the amount actually reported.

While the double taxation conventions provide for the exemption from double taxation, Hungary has only about 73. This means that Hungarian citizens who receive income from the 120 countries and territories with which Hungary does not have a contract will be taxed by Hungary, regardless of the tax that has already been paid elsewhere. In other areas, discussions are under way within the UN subcommittee on international tax cooperation in the context of the digitization of the economy. The United Nations is holding a large workshop in September 2020 to build the capacity of officials from developing countries to assist their ministers and participate in international negotiations on the taxation of digital economic activity. This capacity can also help the authorities to establish regional tax cooperation mechanisms to coordinate measures and to consider alternatives in the event of no agreement.