Does Voluntary Tax Compliance Increase After Granting Tax Amnesty?

Abstract

Objective - The main objective of this study is to explore the meaning of voluntary tax compliance by a person after they are granted tax amnesty. Methodology/Technique - This research is qualitative research and uses a transcendental phenomenology method. Findings - The results show that tax compliance does not automatically increase after a grant of tax amnesty. The reason for this is the fact that taxpayers wish to avoid being tax audited. Tax amnesty is therefore not yet useful in build trust in the tax authority. Tax authorities need to convince the public that tax amnesty creates justice for all taxpayers. The power of the tax authority is useful to strengthen law enforcement measures. Furthermore, fundamental moral and ethical considerations based on internalization, spirituality and religion tend to improve taxpayers' honesty. Novelty - The trust and power of a tax authority that is in line with taxpayers' honesty is fundamental voluntary to tax compliance. The results of this research demonstrate the need for new tax policies to increase voluntary tax compliance Type of Paper: Empirical Keywords: Moral Ethics; Tax Amnesty; Transcendental Phenomenology; Trust; Voluntary Tax Compliance. JEL Classification: H20, H21, M41.

The Digitization of Voluntary Disclosure Program

“…After the tax amnesty, the main program of the tax authorities is law enforcement, but this is still difficult considering that compliance is not yet optimal. This becomes logical considering that there is a view from taxpayers who participate in the tax amnesty rather than using the facilities [3][4] [5]. Taxpayers put forward rational thinking when deciding to participate in tax amnesty, this is reinforced by the view of taxpayers as human beings who always considering the sacrifices and benefits obtained [6][7] [8].…”

Tax amnesty schemes, anti-money laundering regulations and customer due diligence by financial institutes: an evaluation of the implementation issues in Pakistan

“…A severe concern of developing countries involves their alarmingly low level of tax compliance (Sudarma and Darmayasa, 2017). Tax compliance is influenced by various factors including trust in the government (Jimenez and Iyer, 2016; Kastlunger et al , 2013; Kirchler et al , 2008; Kogler et al , 2015; Mas’ud et al , 2014), the legitimacy of tax authorities (Gangl et al , 2015) and tax morale (Alm and Torgler, 2006; Lago-Peñas and Lago-Peñas, 2010; Lubian and Zarri, 2011; Torgler, 2012).…”

“…Tax compliance is the primary objective of tax authorities implementing TA regimes (Alm et al , 2009). However, studies show that TA schemes do not ensure sustainable tax compliance (Alm, 1988; Alm and Martinez-Vazquez, 2007; Alm et al , 1990, 2009; Christian et al , 2002; Fisher et al , 1989; Hasseldine and Bebbington, 1991; Joulfaian, 1988; Luitel and Sobel, 2007; Sudarma and Darmayasa, 2017; Torgler et al , 2003; Uchitelle, 1989).…”

Tax amnesty and taxpayer morality in predicting taxpayer compliance

“…Granting tax amnesty does not automatically increase taxpayer compliance. Thus, tax authorities need to continue to convince taxpayers that the implementation of taxpayer amnesty brings justice to all parties (Sudarma & Darmayasa, 2017). Table 1.…”

“…Theoretically, there is still a gap in the literature about the factors that affect taxpayer compliance. Several previous studies still looked at taxpayer compliance with different findings, like the studies of Aladejebi (2018), Murweni (2018), Sudarma and Darmayasa (2017), Gerger (2012), and Ipek, Öksüz, and Özkaya (2012), which only see from the perspective that tax amnesty can improve taxpayer compliance. Meanwhile, the literature (Brink & Porcano, 2016;Di Gioacchino & Fichera, 2020;Luttmer & Singhal, 2014;Stark & Kirchler, 2017;Williams & Horodnic, 2015;Windebank & Horodnic, 2017) focuses on explaining how taxpayer morality will strongly influence taxpayer compliance.…”