Tax Morale II
Building Trust between Tax Administrations and Large Businesses
The issue of trust between Multinational Enterprises (MNEs) and tax administrations is a vital part of the tax system, but relatively little studied. Building on previous OECD research on tax morale, which measures taxpayer perceptions and attitudes towards paying and evading taxes, this report presents new data on how tax administrations perceive MNE behaviour towards tax compliance. With a particular focus on the challenges facing developing countries, this report brings together this data with previous data on MNE perceptions, and the outcomes of a series of regional roundtables on tax morale held between tax administrations and MNEs. Having identified a number of challenges around trust, transparency and openness, the report sets out a range of approaches to help build trust, improve communications, and build more effective relationships between taxpayers and tax administrations.
Executive summary
The taxation of large businesses, and especially Multinational Enterprises (MNEs), has been a high priority globally for a number of years. Updating the international tax rules to ensure that governments are better able to tax MNEs in the era of globalisation and digitalisation has been on the international political agenda since the global financial crisis. This prioritisation has led to a number of important reforms, including the update in 2011 of the OECD Guidelines for Multinational Enterprises (OECD, 2011[1]), which call on MNEs to comply with both the letter and spirit of the laws and regulations of the countries in which they operate, the OECD/ G20 Base Erosion and Profit Shifting (BEPS) Actions agreed in 2015, and the landmark agreement reached in October 2021 on the two-pillar solution to addressing the tax challenges of the digitalising economy, joined by 137 members of the OECD/G20 Inclusive Framework on BEPS (hereafter Inclusive Framework).
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