Tax Morale II

Annex A. Tax administration officials perceptions survey results

Table A A.1. Perceptions of large business/MNE behaviour

1. When thinking about the large/MNE business in your country, are the following statements accurate?:
	Africa	Asia	OECD	LAC
A. Large/MNE business are open and transparent with the revenue authorities with their tax affairs, and relevant information
Yes, almost all large/MNE businesses	6%	9%	13%	4%
Yes, most large/MNE businesses	38%	45%	51%	27%
About half of large/MNE businesses	19%	21%	22%	26%
No, only some large/MNE businesses	30%	21%	12%	33%
Almost no large/MNE businesses	7%	4%	1%	10%
B. The tax information provided by large MNEs to the tax authorities can be trusted.
Yes, almost all large/MNE businesses	4%	8%	15%	3%
Yes, most large/MNE businesses	39%	45%	59%	34%
About half of large/MNE businesses	24%	28%	21%	25%
No, only some large/MNE businesses	26%	17%	5%	31%
Almost no large/MNE businesses	7%	2%	1%	7%
C. Large businesses/MNEs respond to information requests from the tax authority within the time limits specified.
Yes, almost all large/MNE businesses	16%	17%	27%	11%
Yes, most large/MNE businesses	34%	45%	48%	44%
About half of large/MNE businesses	18%	22%	19%	22%
No, only some large/MNE businesses	27%	13%	5%	16%
Almost no large/MNE businesses	5%	2%	1%	7%
D. Large/MNE business hand the relevant information requested in the correct form.
Yes, almost all large/MNE businesses	9%	14%	24%	5%
Yes, most large/MNE businesses	45%	47%	51%	39%
About half of large/MNE businesses	21%	22%	20%	25%
No, only some large/MNE businesses	19%	15%	4%	21%
Almost no large/MNE businesses	6%	2%	1%	9%
E. Large/MNE business are willing to cooperate with the tax authorities.
Yes, almost all large/MNE businesses	13%	17%	24%	8%
Yes, most large/MNE businesses	48%	51%	60%	41%
About half of large/MNE businesses	20%	19%	10%	23%
No, only some large/MNE businesses	18%	13%	4%	21%
Almost no large/MNE businesses	2%	1%	2%	7%
2. When thinking about large/MNE businesses in your country, please rate the following statements as per the scale
	Africa	Asia	OECD	LAC
A. Against the request of tax authorities, large/MNE business answer the tax authorities in an open transparent and straightforward manner.
Almost all large/MNE businesses	4%	8%	13%	4%
Most large/MNE businesses	39%	39%	51%	34%
About half of large/MNE businesses	17%	29%	30%	27%
Some large/MNE businesses	36%	21%	5%	28%
Almost no large/MNE businesses	4%	3%	1%	8%
B. Large/MNE business pay their tax liabilities within the established due date (or within a reasonable time-frame where no such due dates are established).
Almost all large/MNE businesses	22%	23%	50%	34%
Most large/MNE businesses	58%	54%	42%	51%
About half of large/MNE businesses	11%	13%	6%	9%
Some large/MNE businesses	8%	9%	2%	5%
Almost no large/MNE businesses	2%	2%	1%	1%
3. When information requested by the tax authorities was not available from the taxpayer, the MNE/large business involved provided a justified explanation and collaborated with the authorities?
	Africa	Asia	OECD	LAC
Almost always provided	8%	8%	21%	12%
In most cases	42%	45%	57%	38%
In some cases	40%	38%	18%	40%
In most cases did not	9%	7%	1%	8%
Almost never	1%	1%	2%	2%
4. In case of a misunderstanding of the law from tax authorities, are business usually cooperative to identify the issue and attempt to resolve it?
	Africa	Asia	OECD	LAC
Almost all large/MNE businesses.	15%	18%	17%	11%
Most large/MNE businesses.	48%	50%	61%	38%
About half of large/MNE businesses.	9%	15%	16%	18%
Some large/MNE businesses.	27%	15%	5%	21%
Almost no large/MNE businesses.	1%	1%	2%	12%
5. In your Tax Administration, when auditing a large/MNE business, how often do significant disputes arise?
	Africa	Asia	LAC	OECD
Almost always.	14%	8%	27%	4%
Very often.	35%	35%	41%	29%
In some cases.	46%	48%	27%	59%
Very rarely.	6%	7%	6%	9%
Never.	0%	1%	0%	0%
6. To what extent do you agree with the following statement? Answer according to the following scale:
“When a disagreement has been found between a large/MNE business and the tax authorities, the business involved has been open to consider dispute resolution procedures (mediation/ arbitration).”
	Africa	Asia	OECD	LAC
Almost all large/MNE businesses are open to resolution procedures.	17%	18%	14%	9%
Most large/MNE businesses are open to resolution procedures.	44%	39%	43%	28%
About half of large/MNE businesses are open to resolution procedures.	11%	14%	17%	14%
Some large/MNE businesses are open to resolution procedures.	25%	25%	20%	25%
Almost no large/MNE businesses are open to resolution procedures.	4%	4%	6%	24%
7. In your experience, when discussing/seeking to resolve disputed issues with large/MNE business, the attitude of MNEs/Large businesses has been:
	Africa	Asia	OECD	LAC
Cooperative, in almost all cases.	24%	23%	35%	17%
Cooperative, in some cases.	66%	56%	46%	51%
Neither cooperative nor non-cooperative.	5%	12%	14%	15%
Non-cooperative, in some cases.	5%	8%	5%	13%
Not cooperative at all.	1%	1%	0%	5%
8. In the course of negotiations or alternative dispute resolution procedures, large/MNE business have acted in good faith and have not tried to exert illegal influence in the process:
	Africa	Asia	OECD	LAC
Almost always acted in good faith.	9%	14%	31%	11%
In most cases acted in good faith.	45%	47%	45%	36%
In some cases acted in good faith.	41%	28%	15%	35%
Never acted in good faith.	1%	2%	0%	6%
My jurisdiction doesn't contemplate alternative dispute resolution procedures.	4%	8%	10%	13%
9. In terms of their tax behaviour, do you think that local businesses, in comparison to MNEs…:
	Africa	Asia	OECD	LAC
Local businesses are more compliant than MNEs.	19%	15%	21%	24%
Local businesses are equally compliant as MNEs.	51%	51%	40%	45%
Local businesses are less compliant than MNEs.	30%	35%	39%	31%
10. To what extent does your country provide tax incentives to large/MNE business (in general legislation, not bilateral contracts) as a tool to attract investments?
	Africa	Asia	OECD	LAC
To a large extent (i.e. almost all large/MNE businesses are eligible).	24%	22%	15%	26%
To some extent.	35%	33%	34%	18%
Only for particular sectors.	38%	35%	10%	47%
To a small extent.	1%	4%	14%	6%
We do not offer tax incentives to large/MNE business.	2%	6%	27%	3%
11. Do you think that most large/MNE businesses utilise tax incentives in the way your home government/your legislation intended? Answer in terms of ratio of all firms:
	Africa	Asia	OECD	LAC
Almost all large/MNE businesses use tax incentives as intended.	10%	20%	18%	13%
Most large/MNE businesses use tax incentives as intended.	40%	38%	52%	35%
About half of large/MNE businesses use tax incentives as intended.	11%	25%	15%	16%
Some large/MNE businesses use tax incentives as intended.	33%	12%	12%	29%
Almost no large/MNE businesses use tax incentives as intended.	5%	4%	2%	7%
12. When thinking about the large/MNE business in your country, are the following statements accurate?:
	Africa	Asia	OECD	LAC
A. “Businesses lobby the government to obtain individual tax incentives outside of the existing legislation.”
Almost all large/MNE businesses	12%	5%	8%	17%
Most large/MNE businesses	19%	16%	16%	30%
About half of large/MNE businesses	7%	14%	14%	10%
Only some large/MNE businesses	42%	44%	37%	31%
Almost no large/MNE businesses	20%	21%	25%	12%
B. “Businesses seek to claim tax incentives/exemptions that are not in the statutory, regulatory or administrative framework.”
Almost all large/MNE businesses	8%	4%	5%	12%
Most large/MNE businesses	15%	16%	7%	21%
About half of large/MNE businesses	9%	12%	11%	10%
Only some large/MNE businesses	39%	39%	41%	34%
Almost no large/MNE businesses	29%	28%	35%	22%
13. Does your tax administration have clear guidelines/guidance/procedures to manage the relationship between the revenue authorities and large/MNE business?
	Africa	Asia	OECD	LAC
Yes, there is a detailed procedure in place.	52%	53%	50%	35%
To some extent: there is a limited/general procedure in place.	36%	38%	37%	47%
No, there is no specific procedure in place.	11%	9%	13%	18%
14. Is it your impression that most Large/MNE businesses follow these guidelines/ procedures when dealing with tax authority officials?:
	Africa	Asia	OECD	LAC
Yes, almost all large/MNE businesses.	18%	20%	27%	13%
Yes, most large/MNE businesses.	60%	56%	51%	45%
About half of large/MNE businesses.	9%	13%	11%	14%
No, only some large/MNE businesses.	7%	6%	6%	19%
No, almost no large/MNE businesses.	6%	5%	5%	10%
15. Large/MNE business usually do not attempt to bribe tax officials in order to obtain beneficial outcomes. Answer, degree of agreeing:
	Africa	Asia	OECD	LAC
Almost no large/MNE businesses attempt to bribe tax officials.	29%	51%	81%	41%
Some large/MNE businesses attempt to bribe tax officials.	50%	26%	5%	31%
About half of large/MNE businesses attempt to bribe tax officials.	5%	7%	4%	8%
Almost all large/MNE businesses attempt to bribe tax officials.	9%	10%	7%	12%
Most large/MNE businesses attempt to bribe tax officials.	7%	5%	3%	8%
16. In my experience, in my country, when asked to explain their tax practices publicly (i.e. to the media, civil society, parliament) the approach of large businesses/MNEs has been:
	Africa	Asia	OECD	LAC
Willing to explain their position, in most cases.	19%	29%	41%	13%
Refused to publicly discuss their taxation practices, in most cases.	20%	15%	21%	19%
I have never encountered this case.	61%	56%	38%	68%
17. Had you heard about the Business at OECD Statement on Best Practices for Engaging with Tax Authorities in Developing Countries before taking this survey?
	Africa	Asia	OECD	LAC
Yes.	23%	34%	33%	36%
No.	77%	66%	67%	64%
18. Do you find the Business at OECD Statement on Best Practices useful in improving the relationship between businesses and the tax authorities?
	Africa	Asia	OECD	LAC
Yes.	80%	87%	85%	92%
No.	20%	13%	15%	8%
19. Do you think that the Business at OECD Statement on Best Practices could be improved?
	Africa	Asia	OECD	LAC
Yes.	55%	60%	48%	50%
No.	45%	40%	52%	50%

Note: Simple regional average. Countries are weighted so that no country represents more than 10% of their regional sample

Source: OECD (2020) Survey on MNEs and Big Four Firms tax behaviour

Table A A.2. Perceptions of Big Four behaviour

20. To what extent do you agree with the following statements based on principles set out by the Big Four? "Big Four firms in my jurisdiction…."
	Africa	Asia	OECD	LAC
A. Are cooperative with the tax authorities.
Yes, in the majority of the cases.	50%	45%	58%	27%
Yes, in some cases.	38%	44%	34%	41%
Only in few cases.	11%	7%	8%	26%
Never.	2%	4%	0%	6%
B. Only promote tax planning aligned with substance (i.e. Do not promote artificial tax planning structures).
Yes, in the majority of the cases.	19%	22%	29%	17%
Yes, in some cases.	49%	53%	45%	44%
Only in few cases.	28%	21%	23%	30%
Never.	5%	5%	3%	9%
C. Follow the spirit/intention of tax laws (i.e. do not try to exploit loopholes in national legislation to obtain tax advantages for their clients).
Yes, in the majority of the cases.	23%	26%	22%	19%
Yes, in some cases.	37%	45%	48%	36%
Only in few cases.	33%	24%	24%	33%
Never.	7%	5%	6%	12%
D. Are transparent with the tax authorities, providing all relevant information when requested.
Yes, in the majority of the cases.	26%	27%	31%	18%
Yes, in some cases.	46%	46%	52%	45%
Only in few cases.	24%	22%	15%	30%
Never.	4%	6%	2%	6%
21. In my opinion there is a role for the Big 4 to be contracted to provide services to the government in (tick all that apply):
	Africa	Asia	OECD	LAC
Advising on domestic tax policy.	52%	45%	25%	22%
Advising on international tax policy.	55%	49%	31%	30%
Advising on how to improve tax administration	55%	43%	31%	25%
Providing technical training to tax officials.	38%	38%	32%	33%
Outsourcing of tax collection functions.	17%	7%	2%	7%
22. In your opinion, do the activities and advice of the Big 4 encourage their clients to:
	Africa	Asia	OECD	LAC
Be more compliant and willing to pay tax in my country.	60%	65%	40%	33%
Have no impact on their clients’ compliance and willingness to pay tax.	26%	24%	34%	31%
Be less compliant and less willing to pay tax in my country.	14%	11%	26%	36%
23. In comparison to local tax advisers, do you think that the Big 4 firms:
	Africa	Asia	OECD	LAC
Advise their clients to be more aggressive in their tax strategies.	45%	43%	41%	58%
Advise their clients to be less aggressive in their tax strategies.	20%	23%	16%	12%
There is no difference in the way local advisers and the Big Four firms advise their clients.	35%	34%	43%	30%
24. In your opinion, to what degree do the Big 4 firms seek to use their power to lobby/influence in favour of their clients?:
	Africa	Asia	OECD	LAC
A. To influence decisions of the tax authority on individual cases.
They don’t have the power to lobby/influence.	22%	23%	18%	26%
Their power to lobby/influence is used legitimately.	40%	47%	57%	33%
They sometimes use their power illegitimately.	35%	26%	19%	29%
They often use their power illegitimately.	4%	4%	6%	12%
B. To influence the tax policies and laws of the country.
They don’t have the power to lobby/influence.	23%	21%	11%	25%
Their power to lobby/influence is used legitimately.	43%	53%	62%	38%
They sometimes use their power illegitimately.	27%	20%	22%	22%
They often use their power illegitimately.	7%	6%	6%	15%

Note: Simple regional average. Countries are weighted so that no country represents more than 10% of their regional sample

Source: OECD (2020) Survey on MNEs and Big Four Firms tax behaviour

Table A A.3. Perceptions on staff retention

26. Finally, the OECD is also interested in understanding better the challenges of staff retention. In the past 5 years in your team, what percentage of staff has been lost to the private sector?
	Africa	Asia	OECD	LAC
0% of our staff has gone to the private sector in the last 5 years	34%	37%	17%	27%
10-20% of our staff.	50%	47%	58%	51%
21-40% of our staff.	10%	10%	21%	13%
41-60% of our staff.	3%	5%	3%	8%
More than 60% of our staff.	2%	1%	1%	1%
27. And to the Big Four firms?
	Africa	Asia	OECD	LAC
0% of our staff has gone to the private sector in the last 5 years	52%	54%	31%	55%
10-20% of our staff.	38%	36%	59%	37%
21-40% of our staff.	8%	7%	10%	6%
41-60% of our staff.	2%	2%	0%	1%
More than 60% of our staff.	1%	1%	1%	1%
28. In the past 5 years in your team, how often has your Administration recruited staff from the private sector and/or Big Four firms?
	Africa	Asia	OECD	LAC
0% of our staff has gone to the private sector in the last 5 years	55%	54%	37%	34%
10-20% of our staff.	30%	35%	47%	40%
21-40% of our staff.	9%	7%	13%	15%
41-60% of our staff.	4%	2%	3%	7%
More than 60% of our staff.	2%	2%	1%	5%
29. In your opinion, what are the main reasons why MNEs and/or the Big Four seek to hire public officials working on tax? (tick all that apply):
	Africa	Asia	OECD	LAC
To access their experience in working within the tax administration.	81%	57%	70%	76%
To gain access to the networks and contacts of public officials.	42%	38%	39%	34%
Because they are better trained or more qualified than staff in the private sector.	34%	28%	39%	22%
To directly influence an ongoing tax dispute.	28%	15%	12%	19%
Other	12%	2%	1%	3%

Note: Simple regional average. Countries are weighted so that no country represents more than 10% of their regional sample

Source: OECD (2020) Survey on MNEs and Big Four Firms tax behaviour