The Model Taxpayer Charter of taxpayer rights and responsibilities aims to work as a blue print for a better tax system that can be adapted and embedded in law for participating nations.
The provisions were derived from a survey of taxpayer rights and responsibilities in 37 countries, collectively accounting for over 73% of world GDP.
The charter was created by the Asia-Oceania Tax Consultants Association (AOTCA), Confédération Fiscale Européenne (CFE) and the Society of Trust and Estate Practitioners (STEP).
Mike Cadesky, vice president of STEP and co-author of the report, said governments, “often lose sight of the importance of whether taxpayers and tax advisors believe that the tax system is, broadly speaking, fair.
“This report finds that penalties alone are not sufficient to achieve a high level of taxpayer compliance and that a system perceived as fair, results in higher levels of compliance across the board,” he added.
Ian Edward Hayes, vice president of CFE said, “As we begin the search for tax systems fit for purpose in the 21st Century we need to accept that transparency, clarity and simplicity can only work in an environment where taxpayers are treated equally.”
Copies of the preliminary report have been sent to the relevant finance ministers of participating countries, the EU, OECD, the United Nations Fiscal Affairs Committee, the World Bank, the IMF, and other interested stakeholders.