The Long Run Effect of Tax Amnesty in Indonesia

Tax amnesty often used by the government of any country to boost their tax collections in the short run. However, the effectiveness of this amnesty is still being debatable, particularly in the long term. This study aimed to examine the effect of a tax amnesty named Sunset Policy in Indonesia conducted in 2008, as a sample case in a developing country. At macro-level, this study shows that the Policy is effective in improving compliance of individual taxpayers in the long run.