The importance of trust
“Substantial evidence across countries and regions indicates that the willingness to pay taxes and support reform is higher when trust in the state is strong.”
Following the pandemic many governments are required to raise more revenue to allow for responsible spending to help their people and their economies recover and become more resilient.
Tax reforms, expanding the tax base or digitalising tax administrations are important measures taken by governments to achieve better and improved revenues.
However, the authors Marcello Estevao, Kalpana Kochhar and Ed Olowo-Okere, highlight another important factor: Trust between the state and the taxpayer as the foundation of compliance.
They reinforce our understanding of the importance of trust, fairness and equity across all tax administrations’ strategies and have those communicated transparently with their client base. Read the full article here.