i) What does tax amnesty seek to serve?

• Tax amnesty is a limited-time government offer that allows individuals or businesses that have failed to register, file returns, or pay taxes to regularize their tax obligations without facing penalties or criminal charges.
• The primary goal of tax amnesty is to broaden the tax base, improve voluntary tax compliance, and encourage taxpayers to disclose hidden or undeclared income and assets, thereby increasing government revenue in the short term.

ii) Effects of tax amnesty on revenue:

• Immediate revenue boost: Tax amnesty often results in a short-term increase in tax revenue as previously non-compliant taxpayers come forward to settle their outstanding liabilities without facing penalties.
• Long-term compliance: Taxpayers who participate in the amnesty program may continue to comply with tax regulations in the future, contributing to sustained revenue collection over time. However, repeated tax amnesties may lead to a culture of tax avoidance, with some taxpayers delaying payments in anticipation of future amnesties.