– 55.6% see taxes as a primarily law and regulation in Africa
– Africa has a net positive trust in tax authorities of 34.1%
Nairobi, Kenya – Globally only 33% agree that tax revenues in their country are spent for the public good (46% disagreeing, rest neutral). Africa painted a slightly more encouraging picture with 38% of African taxpayers agreeing that tax is spent for the public good, while 43% disagreed (rest neutral).
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. The survey found that 52% of respondents agree that taxes are a contribution to the community rather than a cost (25% disagree, rest neutral). Africa in contrast, nearly two thirds (21% strongly agreed and 44%) agreed with the statement ‘taxes are a contribution to the community rather than a cost to me’, while only just under 20% disagreeing.
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. The 2024 survey marks the most significant expansion of the work to date, both in terms of questions asked and countries covered.
Africa and Asia both sees tax as a matter of law compared with Latin America. In Africa 55.6% see it as primarily law and regulation, 13.8% as morals and fairness and 30.6% as an equal blend. In Asia the figures were similar (52%, 36% and 12%). But in Latin America at 38.9% law and regulation was below an equal blend of 44.3% and the moral score was highest across the globe at 16.8%.
Jamil Ampomah, director of Africa, ACCA said: ‘This is a groundbreaking study of public trust in tax in Africa. And while there is much in the research which is encouraging – especially compared with other regions of the world – we need to ensure the dialogue among governments, policy makers and stakeholders continues. We need to see public trust in tax maintained to help ensure sustainable development.’
George Njari, Head of Eastern Africa at 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.’
Countries in Africa surveyed were Angola, Egypt, Cote d’Ivoire Kenya, Nigeria. Other key results are:
- Africa has a net positive trust in tax authorities of 34.1%, not as high as Asia’ 38.9% but in sharp contrast to Latin American’s negative rating of 4.2%
- Women expressed slightly more positive sentiments about interactions with tax authorities than men in Africa and Asia, but this position was reversed in Latin America
- Africa shares a similar view with other world regions that cheating on taxes is never acceptable at 63.6% with an average score across the globe of 61.5%
It was interesting to note that in Africa there is significant variation across the five sampled countries, with Egypt and to a less extent Cote d’Ivoire tending to have more positive views on taxation than the other countries.
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.
