1. BUILDING TAX CULTURE, COMPLIANCE AND CITIZENSHIP A GLOBAL SOURCE BOOK ON TAXPAYER EDUCATION

2. Structure 1.Background and context: – The OECD and the Task Force on Tax and Development? – Why does the OECD work on taxpayer education? 2.The global source book on taxpayer education: – Content – Lessons learnt 2

3. = promote public policies that will improve the economic and social well-being of people around the world. = forum in which governments can work together to share experiences and seek solutions to common problems, e.g. peer review mechanisms. set international standards on a wide range of issues, from agriculture and tax to the safety of chemicals. 1. Background and context: The Organisation for Economic Co-operation and Development (OECD) 3

4. Creation: 2010 Flexible membership from OECD countries; developing countries; international and regional organisations; civil society; business Objective is to create an enhanced enabling environment to assist developing countries collect taxes effectively and fairly. Bi-annual workplan proposed by the Task Force and agreed by OECD committees, including work on state-building, taxation and capacity building 1. Background and context: The OECD Task Force on Tax and Development 4

5. = Many Countries will not Raise the Tax Needed to Meet the Millennium Development Goals Some countries (including half of sub Saharan Africa countries) raise less than 17% of GDP in tax revenues, the minimum level considered by the UN as necessary to achieve the MDGs. 1. Background and context: Why Tax and Development? 5

6. Examines the attitudes and perceptions of citizens in developed and developing countries to taxation and tax evasion  Based on World Values Survey, Afrobarometer, Asiabarometer and Latinobarometro data Attitudes towards taxation are shaped by factors beyond enforcement and the probability of being caught for tax evasion.  Socio-economic factors (education, gender, income, employment, age, and religious beliefs) influence tax morale.  Institutional factors, such as trust in government and satisfaction with public services and the functioning of democracy Link between Tax Morale and tax compliance Task Force requested to compile and disseminate effective practices in taxpayer education leading to the preparation of a source book 1. Background and context: 2012 OECD report « What drives tax morale? » 6

7. 28 different innovative country approaches to taxpayer education : 5 – page chapters including objectives of programme, focus on specific initiative, impact, lessons learnt. 2. Global Source Book on Taxpayer Education Content 7 BangladeshJamaïcaNigeria BhutanKenyaPeru BrasilKoreaRwanda BurundiLebanonSenegal ChileMalaysiaSingapur ColombiaMauritiusSouth Africa Costa RicaMexicoTurkey El SalvadorMoroccoUruguay EstoniaMozambiqueZambia Guatemala

8. Taxpayer education to: – Strengthen the state-citizen relationship – Address the informal sector – Promote voluntary compliance and social cohesion Leading to a transformation of the tax authorities and linking tax compliance to citizenship and values of cohesive democratic societies 2013 OECD study on « Aid Modalities for Strengthening Tax Systems » confirms taxpayer education as an effective mechanism to rebuild trust and stimulate citizen participaiotn in the public debate. 2. Global Source Book on Taxpayer Education Content 8

9. Raising awareness and making life easier: – Raise public’s awareness of new tax laws and methods of filing, to answer the public’s inquiries and to make life easier for taxpayers. e.g. Lebanon, Zambia, South Africa, Korea Tackling the informal sector: – Broadening the tax base to reduce informality and non-payment of tax. e.g. persuade small traders to register for value added tax (Burundi) or get into the habit of asking for official receipts Reaching the next generation; – Insertion of taxpayer educaiton in school and university curricula. e.g. Costa Rica, El Salvador, Morocco, Mexico, Brasil 2. Global Source Book on Taxpayer Education a range of themes 9

10. Tax in cyberspace – Resource optimisation through ICT use. e.g. El Salvador, Chile, Uruguay Tax at the games room and on TV – tax can be explained through interactive play spaces, theatre, video games, and soap operas on television. E.g. Malaysia, Nigeria Celebrating tax: tax days and festivals – Bangladesh celebrates National Income Tax Day – Guatemala’s annual citizen culture festival “Strength Lies in Numbers” – Rwanda’s Taxpayer’s Day 2. Global Source Book on Taxpayer Education a range of approaches 10

11. Solid partnerships - domestically, regionally and even internationally: – long-term, sustainable cultural change requires building solid alliances with the education sector, on condition of identification of common goals. – In Latin America alone, nine countries have included tax education in their school syllabi – Other useful partners can be business and civil society (Jamaica, Rwanda, Brasil) Tax Champions - High-level political commitment and participation Promote cross-country learning – ATAF, CIAT, IOTA 2. Global Source Book on Taxpayer Education Keys to success? 11

12. Limited time, financial and human resources ICT’s might bring new sorts of problems: Nobody else will provide taxpayer education Little ‘hard’ evidence of success or impact evaluations, how to measure behavioural change? What is the role for development co-operation? How to make revenue-expenditure linkages ‘concrete’? 2. Global Source Book on Taxpayer Education Obstacles and Challenges for the future? 12

13. South Africa – Mobile Tax Units Mozambique – Annual campaign and simplified tax for small taxpayers Rwanda _ Taxpayer day, tax advisory councils Morocco – taxpayer education at school through theatre, media campaigns Korea – tax classes for small businesses 2. Global Source Book on Taxpayer Education Some examples 13