Repeated tax amnesty boosts compliance, high sanctions drive highest taxpayer adherence.
The study looked at how knowing about repeat tax amnesties and facing tax penalties affect people's willingness to follow tax rules. They tested this on accounting students and found that knowing about tax amnesties and facing tax penalties can make people more likely to comply with tax laws. Interestingly, when people don't know about repeat tax amnesties, they are more likely to follow tax rules if they also face high tax penalties. This shows that both knowledge of tax amnesties and the threat of tax penalties can influence how people behave when it comes to paying taxes.