IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 9 NO. 10 2023
DOI: https://doi.org/10.56201/ijssmr.v9.no10.2023.pg107.124

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Tax Amnesties: Trends and Implication for Taxpayers’ Compliance. A Literature Review

OTUYA Sunday and OFEIMUN Godwin

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Abstract

The focus of this paper is to conduct a literature review on tax amnesties and the factors which are necessary for its effective implementation for compliance. The study employed a library based research design which involves desk-review of extant literature. The literature review shows much research attention given to the issue, though the findings are mixed and quite inconclusive. The review also brings up a few issues which are seen as probable weaknesses or inconsistencies in tax amnesty research looking from a tax compliance perspective. First, while there is evidence regarding success of tax amnesties in the developed world, empirical proof on the progress made in developing countries are scarce. Second, although the concept of tax amnesty has been extensively examined in the tax literature, only a few studies have used an experimental approach to examine the long run effect of tax amnesty on voluntary tax compliance. Third, there is still no clear unanimity in the literature regarding how social and psychological factors such as political trust, political will, perceived corruption, and perceptions of justice and punishment objectives influence the implementation of tax amnesties. Finally, the study observes that in tax amnesty research there is always the tendency for majority of prior studies to assume homogeneity in level of compliance whereas significant differences may exist in the degree of compliance between high and low income earners. The study therefore concludes that there is the need for future empirical studies to address these weaknesses and inconsistencies.

keywords:

Tax Amnesty; Tax Compliance; Tax Administration; Budget Deficit, Tax Revenue GEL Classifications: H2, H21, H24, H27

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References:

Abayomi, W. (2017). Federal Government of Nigeria launches tax amnesty. Lagos: KPMG.

Abiola, S. (2017). Understanding VAIDS: The Legal framework. A lecture delivered at Training
Workshop by the Ministry of Finance at Nicon Luxury, Abuja on 9 November, 2017.

Abiola, J. & Asiweh M. (2012). Impact of tax administration on government revenue in a
developing economy. A case study of Nigeria. International Journal of Business and
Social Science, 3(8), 111-125.

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