A survey conducted the Association of Chartered Certified Accountants (ACCA), International Federation of Accountants (IFAC) and the Organisation for Economic Co-operation and Development (OECD) has revealed that taxpayers support the concept of a fiscal contract, where taxes fund public services.
However, the survey, “Public Trust in Tax 2024: Latin America and Beyond”, outlined that only a third believe this agreement is effectively implemented.
The study shared insights on public perceptions of tax and trust in tax systems across 26 countries, mainly in Latin America, as well as in Africa and Asia.
According to the survey, 52% of respondents globally view taxes as a contribution to the community, with 25% disagreeing.
However, only 33% believe that tax revenues in their country are spent for the public good, with 46% disagreeing. Additionally, 32% feel that public services and infrastructure are a fair return for the taxes they pay, with half of the respondents disagreeing.
Latin American countries showed consistently lower positivity towards the fiscal contract compared to African and Asian regional averages.
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By GlobalDataIn Latin America, 47% see taxes as a contribution, while 25% believe public services and infrastructure are a fair return for their taxes.
The region also displayed a unique perspective on tax, with fewer respondents viewing it primarily as a legal issue compared to Africa and Asia.
OECD Centre for Tax Policy and Administration director Manal Corwin said: “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.”
The launch event for the “Public Trust in Tax 2024” survey is scheduled on 28 January 2025.
ACCA CEO Helen Brand said: “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.”
IFAC CEO Lee White said: “As the survey confirms, and in line with previous editions, professional tax accountants are the most trusted source of tax information globally.”