Judging by the crammed Inland Revenue Collection Department offices ahead of last month's deadline to file returns for the preceding fiscal year, there are quite a few people who will be relieved by the tax amnesty which was announced on Thursday by Finance Minister Audley Shaw.

Running until October 31, the amnesty provides various levels of relief from interest and penalty charges on overdue taxes which are fully paid up, gradually going down from 100 per cent to 20 per cent.

We expect that just as in the biblical story of 'The Prodigal Son' where the son who stayed at home was upset at the royal welcome given to the returning one who strayed, there are those taxpayers who will be angered by the amnesty. After all, they may argue (especially those whose deductions are automatic under the PAYE system), why should those who have not obeyed the law be given a break of this potential magnitude?

For with inflation taken into consideration, depending on the length of time the taxes have been owed, the principal, sans late penalties and interest, certainly has much less purchasing power than it did when the debt to the Government was incurred. In addition, especially with the high-interest schemes which have sprung up (and some faltered), if the tax delinquents had invested the money due the public purse, then they would have made a handsome profit and still have more than enough to settle their debts.

emotions

Such emotions among those who have stuck to the letter of the tax law, whether by choice or automatic deduction, are understandable. But so is the amnesty. After all, with tax compliance across all tax types at 38 per cent, as announced by Minister Shaw, prosecution of all is impossible and prosecution of the few unfair.

It is hoped, then, that the amnesty will serve not only to collect a substantial portion of the tax arrears, but also formalise relations between the state and those who are earning but not giving the public purse its due. As Mr Shaw said, "I want to invite all unregistered businesses and self-employed people to come into the tax net, no questions asked."

We also welcome Mr Shaw's intention to upgrade revenue collection centres islandwide, as well as establish one in Portmore. Having led the proverbial horse to the water, it is ludicrous that at the last step of actually making contact with the tax agents of the state, the potentially new (or renewed) taxpayer would be faced with daunting lines in an uncomfortable atmosphere. The process should be easy, for it is not punishment but rather a process of engagement.

We have seen this process of engagement with delinquents work with the National Housing Trust, which had its amnesty in the first half of 2006, when it went after an outstanding sum of $9 billion. In that drive, arrangements were made to clear up about half a billion of the two billion dollars owed by private companies and individuals.

If the current tax amnesty is able to hit even that quarter mark, it would be a substantial sum that could be put to excellent use.