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Across the globe taxpayers support the idea of a fiscal contract – citizens agreeing to pay tax in exchange for services – but a global poll suggests that only a third see the deal working in practice.
Globally the survey found that 52% of respondents agree that taxes are a contribution to the community rather than a cost (25% disagree, rest neutral), but only 33% agree that tax revenues in their country are spent for the public good (46% disagreeing, rest neutral). In addition, 32% agree that public services and infrastructure are a fair return for the taxes they pay (50% disagree, rest neutral).
But the survey found that Latin American countries are consistently less positive than the regional averages for the sample countries in Africa and Asia. The findings are consistent with previous G20 survey results, where Mexico, Argentina and Brazil typically return lower trust and confidence scores than average.
Public Trust in Tax 2024: Latin America and Beyond – research by ACCA (the Association of Chartered Certified Accountants), IFAC (International Federation of Accountants) and joined for the first time by the OECD (Organisation for Economic Co-operation and Development) – surveyed some of the largest countries by population in different regions of the world, including a deep dive focus on Latin America, encompassing different cultures and economies. The 2024 survey marks the most significant expansion of the work to date, both in terms of questions asked and the countries covered.
The focus on Latin America highlighted a weaker support for the fiscal contract in the region, with only 47% agreeing taxes are a contribution, and just 25% agreeing public services and infrastructure are a fair return for the taxes they pay. Respondents in Latin America were also less likely to see tax primarily as a legal issue. While 56% of those in Africa and 52% in Asia see tax mainly as a matter of laws and regulation, only 39% of respondents in Latin America did – 45% saw tax as an equal blend of both laws and morals, and 16% as mainly an issue of morals and fairness.
Helen Brand OBE, chief executive of ACCA said: ‘Trust in tax systems is crucial for sustainable development and prosperity, and the findings of this survey highlight the challenges that many governments across the world face in building it. We look forward to using this important work to engage with policymakers, tax authorities and civil society to drive evidence-based policy initiatives to build effective and trusted tax systems.’
Commenting on the finding that tax accountants are the most trusted source of information on tax, and politicians the least, Lee White, CEO of IFAC, said ‘Consumer and investor protection is the foundation for economic prosperity, which aligns with building trust in the tax ecosystem. As the survey confirms, and in line with previous editions, professional tax accountants are the most trusted source of tax information globally. This trust places an enormous responsibility on our profession to act with integrity, to bridge the gap between governments and taxpayers, and to uphold the highest standards of ethics.’
Manal Corwin, Director of the OECD Centre for Tax Policy and Administration said: ‘We are pleased to join with ACCA and IFAC on this key research. The findings in this report highlight that support for the fiscal contract remains strong in theory, but it’s not being delivered in practice for many. We can use these findings to identify how to rebuild trust in both the theory and practice of tax across the globe.’
Join ACCA, IFAC and the OECD on 28th January 2025 for the launch event of the Public Trust in Tax 2024 survey, during which the key findings of the report will be presented. The 90-minute webinar will also explore the correlations between characteristics and attitudes towards tax issues, and foster dialogue among policymakers, tax authorities, academics, international organisations, and the accountancy profession to promote evidence-based reforms in taxation and trust-building initiatives globally. See here for more details and register.
Access the report here.
