FPI explained that a tax amnesty is a "moral hazard" because it would "encourage cheating" and "conditions the mind of the public that it is permissible to cheat since there will be future amnesties anyway."
In fact, the FPI pointed out, this is already evidenced from the previous and various amnesties granted since 1973.
The FPI also argued that "if the law is to be equitable, equity being an inherent quality of any, forgiving tax evaders implies penalizing dutiful business taxpayers who are competing with tax evaders."
However, the FPI acknowledged that because of the government’s current fiscal problem, some form of tax amnesty may raise much needed revenues.
The FPI, thus, proposed that government include measures that would offset the moral hazard and inequitable treatment of taxpayers.
In drawing up the measures, the FPI said, the government should first determine if the proposed amnesty would ensure that the underground economy is covered.
Past amnesties, the FPI pointed out, have shown that the government was still not able to raise additional revenues from the underground economy.
Likewise, the FPI also wants the government to have in place an information campaign that would ensure an increase in revenue collection and ensure that the public does rely on future tax amnesties.
Government, the FPI stressed, must learn from its previous experience in granting such tax amnesties.
The FPI warned that "the grant of one amnesty after another over the past 30 years has indubitably done damage to our culture. The challenge is how to pursue fiscal stability without inflicting further damage fiscally and to the moral fiber of our nation."