Making the Case For Tax

As Christopher Bullock wrote more than 300 years ago, ‘Tis impossible to be sure of anything but death and taxes.

Many countries in the developing world struggle to raise income tax at anything like the levels required. As a result, they lack the resources to comprehensively fund essential services such as education and healthcare.

Donors and funding bodies fill some of the gaps, but the governments of donor countries face pressure to justify this support when the governments of beneficiary countries might do better in persuading their own citizens to pay their fair share of tax.

Accadian was commissioned by the country’s and an international donor to assess that tax authority’s external communications and develop an advisory communication plan in support of improved revenue collection.

We employed a three-stage process. First, an audit was undertaken of all existing communication channels and products. Second, primary research was conducted with existing taxpayers, with those currently outside the net, and with the authority’s staff. Third, an advisory communications plan with recommendations was delivered.

This research found that there was a combination of ignorance around the tax system, and contempt for government as a whole, which together hindered tax collection. Scepticism, resentment and misperceptions prevailed, with the tax authorities regarded as complicit in wider political corruption. At the same time, tax procedures were seen as impenetrable and the social contract case for taxation was underdeveloped.

At the third stage, Accadian developed a campaign book with a clear audience segmentation, recommendations for communicating with each segment, and a phased communications programme. Drawing on best practice in other countries and addressing the research findings, Accadian’s recommendations set out steps to nudge the spectrum of potential or actual taxpayers up a scale, from ignorant or avoidant to compliant, or even advocates for paying due taxes.

The country’s tax problems are far from solved, but its tax authorities are raising increased revenues, and are doing so equipped with greater understanding of what can successfully widen the tax net, to the benefit of all its people.