Spain tax amnesty brings in less than hoped for

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By The Associated Press, Associated Press

Spain's finance Minister says a tax amnesty aimed at raising money for the recession-hit country only raised about half of what is was supposed to.

Cristobal Montoro said Monday the amnesty had bought in just €1.2 billion — short of the government's €2.5 billion target.

Under the amnesty which came into effect in June and ended last Friday, undeclared assets or those hidden in tax havens could be repatriated by paying a 10 percent tax, with no criminal penalty.

Spain is in the throes of second recession in three years and has 25 percent unemployment. The government's tax revenue has plummeted during the downturn as Spain's companies struggle and consumers rein in their spending.

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