Why Trust in Taxes Is Dwindling: The Public’s Growing Concerns

Did you know that a mere one-third of taxpayers worldwide feel confident that their tax dollars are put to good use? Shocking, right? A recent survey uncovers the real sentiment behind those tax returns, revealing a widespread lack of trust in how tax revenues are spent.

This eye-opening survey—fresh off the press from reputable global organizations—shows that while 52% of respondents view taxes as a community contribution rather than a burden, only 33% believe their government actually spends tax revenue for the greater good. A staggering 46% disagree! Even when it comes to the fairness of public services received, just 32% feel they get a fair return on their tax investment, with a notable 50% disputing that notion.

Interestingly, the views on taxes vary dramatically depending on where you live. In Latin America, only 47% agree that taxes contribute to the community, and a mere 25% think the public services they receive are a reasonable return on their contributions. The sentiment shifts even more when looking at how tax is perceived legally, with Latin Americans more likely to see it as a blend of law and morals compared to their counterparts in Africa and Asia.

“Building trust in tax systems is essential for sustainable development and economic prosperity,” says a leading voice in the accounting world. This survey highlights the uphill battle many governments face in winning over taxpayers. With a clear call to action, the focus is now on engaging policymakers, tax authorities, and civil society to foster effective and trustworthy tax systems.

When it comes to sources of tax information, tax accountants reign supreme, while politicians rank at the bottom of the trust ladder. Strikingly, even though social media is the go-to source for many, especially in Brazil, it sits firmly in the realm of distrust.

“Consumer and investor protection is the cornerstone of economic success, and this survey showcases the crucial link between trust and the tax ecosystem,” emphasizes a top accounting executive. “We must uphold the integrity of our profession, maintain transparency between governments and taxpayers, and exemplify the highest ethical standards.”

While many seem to endorse the idea of a fiscal contract in principle, the reality paints a different picture. Although 52% of respondents believe their taxes contribute to the community, a staggering 61% maintain that there’s no justification for tax evasion.

“Our report underscores that while theoretical support for the fiscal contract is robust, real-world delivery often falls short,” explains a director from the OECD Tax Policy and Administration. “It’s crucial we leverage these insights to rebuild trust in both the taxation theory and its application globally.”

More people are gaining the skills to navigate tax compliance than ever before, but there’s still significant room for improvement. The culture of tax administration is often perceived less favorably than the processes themselves.

A webinar is on the horizon! Join us on January 28, 2025, where leading organizations will unveil groundbreaking findings from this impactful survey.