TAXPAYER COMPLIANCE AND TAX AMNESTY; DOES TAX AMNESTY WORK?

Abstract

Purpose — This study aimed to analyze tax amnesty from the perspective of taxpayers, such as large-scale entrepreneurs, small-scale entrepreneurs, private company employees, tax consultants, and lecturers, and assess whether tax amnesty can increase taxpayer compliance Design/methodology/approach — This study used an interpretive paradigm and transcendental phenomenology. The interpretive paradigm aims to understand and explain the social world from a personal perspective. Transcendental phenomenology is a suitable method to analyze the experience of informants after joining the tax amnesty policy. Findings — Based on the results of the study, it can conclude several findings. First, taxpayers participate in tax amnesty because they want to report all assets without being penalized; second, taxpayers want to get a low tax rate. Third, taxpayers want to avoid tax audits. The analysis of transcendental phenomenology concluded that tax amnesty could increase taxpayer compliance but not for a long time. Practical implications — The tax authority should evaluate and improve in preparing the following tax amnesty policy, especially the tax amnesty implementation and targets. Taxpayers use tax amnesty to gain profits. Originality/value — This study reveals the views of taxpayers in-depth about the tax amnesty program. So that it can view the motivation of taxpayers to follow taxpayers. Hopefully, these findings can provide a broader and deeper picture of the views of taxpayers so that they can be taken into consideration by the government and future researchers Keywords — tax amnesty, transcendental phenomenology, low tax rates, taxpayer compliance Paper type — Field Research