23 March 2017

ACCA, CA ANZ, IFAC: G20 citizens want ‘big picture’ tax policymaking

The average citizen of a G20 country is more concerned that their government cooperates with other countries for a more coherent international system, than competes for national interests such as increasing tax revenue or attracting multinational business, according to a new international survey.

G20 public trust in tax, compiled by ACCA (the Association of Chartered Certified Accountants), IFAC (the International Federation of Accountants) and CA ANZ (Chartered Accountants Australia and New Zealand), draws on the views of more than 7,600 people across the G20 countries, which in turn account for two-thirds of the world population, 85% of the Gross World Product and 75% of world trade.

“In the wake of Brexit, it is clear that the UK government will need to balance national interests with the global ‘big picture’ in future policymaking,” said Chas Roy-Chowdhury, head of tax at ACCA.

“The findings of this survey will be a useful resource in gauging global and local sentiment around tax policy.”

Respondents are largely supportive of tax incentives for a range of social and economic objectives

“While I wouldn’t support constant tinkering with the tax system by governments of G20 countries- as tax regimes need to be long-term and properly bedded down - it is interesting to see that people are highly in favour of utilising tax systems to achieve broad social and economic objectives,” added Roy-Chowdhury.

“More than three quarters (76%) of respondents are supportive of government tax incentives for green energy projects, 74% for retirement planning and 68% for infrastructure projects.”

There are diverse views on tax minimization throughout G20 countries

“The results of the survey indicated that in English-speaking countries of the G20, there was scepticism around tax minimisation,” said Russell Guthrie, Executive Director - External Affairs at IFAC.

“Respondents in Australia, Canada, the US and the UK tend to think that high income earners and multinational companies are not paying enough tax.”

People in G20 countries distrust politicians and the media when it comes to information about the tax system

“Two thirds of respondents distrust or highly distrust politicians on the topic of tax. They are cutting through the political rhetoric, and instead place their trust with the experts,” concluded Guthrie.

“Governments have work to do to rebuild public trust in tax systems. The accounting profession has always advocated for a ‘big picture’ approach to tax policymaking in the global economy - the complexity that exists now is counterproductive to the public interest.”

Full press release

Full report

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