A groundbreaking global survey, Public Trust in Tax 2024, revealed that while most taxpayers believe in the principle of paying taxes as a contribution to society, trust in how governments utilise tax revenues remains low. Conducted by the Association of Chartered Certified Accountants (ACCA), the International Federation of Accountants (IFAC), and the Organisation for Economic Co-operation and Development (OECD), the survey gathered responses from over 10,000 individuals in 26 countries, including Malaysia.
The survey underscores a significant gap between the theory and practice of tax systems worldwide:
- Taxes as a Contribution: 52% see taxes as a contribution to the community, while 25% disagree.
- Public Good: Only 33% of global respondents feel tax revenues are spent for the public good, while 46% disagree.
- Fair Return on Taxes Paid: Just 32% believe public services and infrastructure provide a fair return for their taxes, while 50% disagree.
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.”
Malaysia’s results revealed more optimism than many other countries in the survey, though challenges persist:
- A Positive Contribution: 56% of Malaysians believe taxes are a contribution to the community, above the global average.
- Spending for Public Good: 43% of Malaysian respondents agree tax revenues are spent for the public good, outperforming the global average but leaving room for improvement.
- Fair Return: 40% of Malaysians feel they receive a fair return in public services and infrastructure for the taxes they pay, compared to the global average of 32%.
- Ease of Compliance: Malaysians rank tax processes as relatively efficient, with 60% saying it is easy to file returns and make payments, surpassing the global average of 52%.
- Trust in Accountants: Malaysian tax accountants are the most trusted globally, with an 80% trust rating, reflecting a high level of confidence in the profession.
Andrew Lim, Portfolio Head of ACCA Maritime SEA, remarked, “Malaysia’s stronger-than-average results highlight the potential for further trust-building measures. Transparency, fairness, and engagement remain vital to strengthening the fiscal contract.”
Despite relatively positive perceptions, concerns about corruption and the equitable distribution of tax burdens persist in Malaysia, mirroring broader regional and global trends. Addressing these issues will be key to fostering greater public trust in tax systems.
The full report, Public Trust in Tax 2024, is available at ACCA’s website: https://www.accaglobal.com/gb/en/professional-insights/global-economics/public-trust-tax-2024.html
