LAHORE, December 20, 2024: While taxpayers worldwide recognize the concept of a fiscal contract – the agreement between citizens and governments to pay taxes in exchange for public services – only a third believe it is effectively implemented, according to the Public Trust in Tax 2024 survey.
Conducted by ACCA (the Association of Chartered Certified Accountants), IFAC (International Federation of Accountants), and for the first time, the OECD (Organisation for Economic Co-operation and Development), the survey spans major global regions, including Latin America, Africa, and Asia.
Key Findings
- Perception of Tax as a Contribution: 52% of respondents see taxes as a contribution to the community rather than a cost.
- Skepticism About Public Spending: Only 33% believe tax revenues are used for the public good, while 46% disagree.
- Fair Return on Taxes: Just 32% feel that public services and infrastructure justify the taxes they pay, with 50% disagreeing.
Regional Insights
The survey’s focus on Latin America revealed:
- Weaker Trust: Only 47% see taxes as a contribution, and just 25% feel public services are a fair return.
- View on Tax as a Legal Issue: 39% view taxes primarily as a legal matter, compared to 56% in Africa and 52% in Asia.
Expert Commentary
Helen Brand OBE, Chief Executive of ACCA, emphasized the importance of trust in tax systems, stating:
“Trust in tax systems is crucial for sustainable development. These findings underline the challenges governments face in building trust and highlight the need for evidence-based policy initiatives.”
Lee White, CEO of IFAC, noted the high trust placed in tax accountants:
“Professional tax accountants are globally recognized as the most trusted source of tax information. This trust underscores our profession’s responsibility to act ethically and bridge the gap between governments and taxpayers.”
Manal Corwin, Director of the OECD Centre for Tax Policy and Administration, added:
“Support for the fiscal contract remains strong in theory but lacks practical delivery. These findings provide a foundation for rebuilding trust in global tax systems.”
Upcoming Launch Event
The Public Trust in Tax 2024 findings will be unveiled on January 28, 2025, during a 90-minute webinar. The event will explore correlations between attitudes towards tax issues and provide a platform for dialogue among policymakers, academics, and tax professionals.
Register here for the event and access the full report here.
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About ACCA
Founded in 1904, ACCA is a globally recognized professional accountancy body with over 252,500 members and 526,000 future members in 180 countries. Committed to advancing the accountancy profession, ACCA partners with policymakers, educators, and global organizations to drive sustainable economic development. Visit www.accaglobal.com for more information.
