THE MODERATING ROLE OF RISK PREFERENCES ON THE EFFECT OF TAX AMNESTY ON TAX COMPLIANCE

AUWAL, Abdullahi
Department of Accounting
Bauchi State University, Gadau, Bauchi
ABDULKADIR, Abubakar
Department of Accounting
Bauchi State University, Gadau, Bauchi
SANI, Saidu
Department of Accounting
Bauchi State University, Gadau, Bauchi


ABSTRACT
The objective of this study is to examine the moderating role of risk preference on the
relationship between tax amnesty and tax compliance. The study used survey method of
generating the required data. The total population of the study was 301. The sample was drawn
from the population using Krejcie and Morgan Table of sample determination, thus, the total
sample was 263. The result of the study shows that tax amnesty is significantly and positively
related with tax amnesty. The result also revealed that risk preference could positively but
insignificantly moderates the relationship between tax amnesty and tax compliance. The study
proposed an extension to the basic tax compliance model to incorporate tax amnesty. The study
also indicated that other factors may equally be determinants of tax compliance which
researchers should look out for. The focus on only the economic factors may seem to be a
limitation. Therefore, future researchers should incorporate social, political and technological
factors as the case may be.


Keyword: Tax amnesty, tax compliance, taxpayer, risk preferences.

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