The OECD’s report Tax Morale II: Building Trust between Tax Administrations and Large Businesses seeks to identify ways tax administrations, multinational enterprises (MNEs), the Big Four professional services networks (Deloitte, EY, KPMG, and PricewaterhouseCoopers), and others could enhance voluntary compliance. There are a lot of best practices and new opportunities identified alongside what it calls ‘common challenges.’ This Tax Policy Alert provides a few selected extracts.
The report is based in part on surveys of MNEs and tax officials, as well as a series of regional roundtables that included participants from both groups. The nature of tax rules and their operation, together with differing interpretations of the spirit/intention of the law and the alignment of tax planning with substance, are reflected in the views expressed by stakeholders. The dialogue at the roundtables, in which participants shared views on the outcome of the surveys, suggest a willingness to explore greater understanding and cooperation. The report notes that trust is increasingly recognised as a key driver of tax morale and is more responsive to policy interventions than many other factors. The report is intended to provide a positive platform for improved communication, trust, and policies that could build tax morale, which is defined in the report as “the intrinsic willingness to pay tax.”